Sorry to say this, but builders DO have holding costs. The holding costs for a project builder and a small custom builder varies greatly. In addition if you are holding up the build with getting people in or making variations pre handover, well thats going to affect the time and wages that need to be paid to others. I mean, my partner so some stupid reason has stated he has no problem with the client getting in people to do things pre handover however he does expect that if it is not done within the time frame as agreed he would be compensated for holding up the build.
If it doesn't go both ways, then you will see an even greater decline of builders allowing the client to get stuff done on their own during the build.
Agreed, that neither party should have the best of both worlds. The $250pw penalty for delays I understand and I suppose kind of fair because it applies to both parties.
However, charges because of the increased base price which they set themselves?? That sounds to me like builders protecting their profit margin - making money from doing nothing extra in return.
Anyway, in our case, we haven't made any changes to our plans or colour selections since January when we finalised it all.
I agree that you shouldn't have to pay more however if there is a hold up with the site start and the cost of labour and material does go up I don't see why the builder should cover for it. I also certainly don't think you should pay more if it's the builder that has held up the start. If it is the client holding up the start for whatever reason well I think it is reasonable that the builder is compensated fairly for this. Again i'm taking this on from a little builder perspective rather than a project builder.