Browse Forums Building A New House 1 Aug 25, 2008 9:57 am We are getting ready to go to tender with PD. We have a sales Quotation at this stage it has a 10k allowance for site costs and against estate covenant requirements, local government and OH & S requirements and 5 star requirements it says "note only"
I assume all these costs will come out at the fixed price tender. We have been getting a quote through another builder we have shown him the sales quote as we trust him (he is a very nice chap!!) and he believes that they have not allowed enough in the site costs and that the costing will end up 15-20k more than the sales quote reflects. Needless to say this freaked me out a bit. So I am asking you lovely people for advice. We really only have a couple of minor changes to make to the sales quote so what I want to know is (especially from people dealing with PD) - Did your tender go up significantly from your sales quote due to the aforementioned "note only" requirements. - Once a fixed price tender is signed and a deposit paid are they able to increase any of these costs if you have not changed anything? I am feeling a bit sick now as we have a limit and if it is true that we need to expect another 15 to 20 k we will have some serious rethinking to do!! Any advice appreciated Re: HELP can they change the price from tender to contract 2Aug 25, 2008 10:11 am Oh Penny I hope someone can help you (and me!!) I'm in the same situation - tender tomorrow and I have alot of TBA prices and we got an estimate of our site costs as $20k but I really want them to be around $12k!
I have tender tomorrow and am also scared about what the end cost will be. As far as I know the Note only things - aren't actually costs - I thought they had to put TBA if they were going to find out the cost for you at tender, but again I'm not entirely sure... I hope your tender goes well and you dont get any nasty shocks!! My karma ran over your dogma Re: HELP can they change the price from tender to contract 3Aug 25, 2008 10:17 am Oh I hope it goes ok for you and then you can give me advice
Ben and I just wont be signing anything or handing anything over if we arent 100% happy. Considering they offered us fixed site costs of $9257 and then told us to wait on a site and soil survey as they expected it to be less than that they wouldnt want to come in any higher that 10k or we will be walkking What I am mostly concerned about is if we are happy with the cost sign and pay the deposit that then there will be some reason for an increase in the cost in the future (5 star requirements one of those note only things) as long as I know what I am getting up front I am happy and if I change something later to incurr a cost that is my tough luck but I dont want them coming up with new little ways to get into my back pocket. Good luck tomorrow hopefully someone can help both of us before then!! Re: HELP can they change the price from tender to contract 4Aug 25, 2008 10:27 am I hope tender goes well for the both of you. I know how you feel. I remember the day we went to tender...my stomach was all up in knots because I was so worried about how much it would all come out to since we had set a budget that we didn't want to go over.
Thankfully in the end it actually turned out that we were under budget. Needless to say then I started splurging http://www.rentfreeatlast.blogspot.com/ Building in Berwick ----------------------------------------------------------- "Flying is learning how to throw yourself at the ground and miss." - Douglas Adams Re: HELP can they change the price from tender to contract 5Aug 25, 2008 10:29 am hey guys...gosh its been so long since our sales and tender appointments, so I don't really remember much about them...besides they were really really long! hahaha
um, from what I can remember, in terms of our site costs, our sales guy gave us the site cost, and we chose to fix it, and it didn;t change at our tender. Really the only additional costs from the tender where all the changes we specifically made on the day (like extensions, upgrades etc). I know that at the tender, they have the results fo the soil costs, so haywgl hopefully ur soil tests are ok and it drops the price down? I remember for ours that we fixed the site costs, and the soil tests came back with a P class slab, but that didnt phase me too much, cos they did the soil tests while our land was being dug up by the estate...i think by the time contract came around it had been down graded to a M class slab..i think penny73, in terms of the local government and OH & S requirements and 5 star requirements, it shouldnt be too much. Our PD site is down atm, so I cant give u the exact figure of what we had for these, but i'm pretty sure it was only a few hundred. Also, with your estate covenant requirements, u should find the price at the tender. Ours came up to about 4k (cos we have a corner block) and at tender, they actually had drawings of the plans of what the changes were going to be. To both of you, don't freak out about ur tender. PD are prety cool, and give u lots of time to look through the docs, and the lady that we had explained everything to us. I hope this has helped! Thuy Re: HELP can they change the price from tender to contract 7Aug 25, 2008 11:48 am It is in the Alamanda estate. The sales guy said that Point Cook site costs have been coming in well below 9000k so that is why we shouldnt bother with a fixed price site cost. Re: HELP can they change the price from tender to contract 8Aug 25, 2008 12:03 pm Hi Penny
I think that they really should be able to give you a pretty accurate estimate of site costs , seeing as you are building in a new estate. We were a bit different in that we had to demolish, and have rebuilt in an established area but our (PD) sales guy said "Oh 15K max - it won't be more than that, that's a plenty big enough allowance...." So we were (of course!) hoping for slightly less..........we got to tender, and our site costs were about$18K! As I said, because you're building in a new estate, you won't incur all the extra costs that seem to arise when you build in an established area! Good luuck - hope it comes in nice & low! Solidarity, not solidity.......The Lexicon of Life Re: HELP can they change the price from tender to contract 9Aug 25, 2008 12:28 pm penny73 It is in the Alamanda estate. The sales guy said that Point Cook site costs have been coming in well below 9000k so that is why we shouldnt bother with a fixed price site cost. Some blocks in Alamanda have heaps of fill which pushes site costs up. If PD were willing to fix it previously at under $10k then I wouldn't be expecting it to be much more. Re: HELP can they change the price from tender to contract 10Aug 25, 2008 12:33 pm The fixed price cost was quoted to us before site and soil testing.
I guess its a matter of waiting til tender. So I am gathering from the posts I have read so far that they cannot increase costs after tender unless I make a change? IS that correct?? Re: HELP can they change the price from tender to contract 11Aug 25, 2008 1:13 pm penny73, we had our site costs "fixed" when we signed up with PD and paid our $600 deposit. That was way before the site/soil test was done. My impression is that if you have fixed site costs then they cannot be changed and on the other hand if they have done a test and got a figure this also cannot be changed afterwards, I think that's what tender is all about? If we had of taken the gamble and not fixed them then PD would have done the soil test and then come back to us with a price.
Our sales guy had all the prices for our covenant requirements and the fixed site cost so we basically knew what we were up for during the first visit. Now we had not one bit of rock on our block so we might have been able to save a few $$ by not fixing them but our neighbour has heaps of rock and were quoted $13,000 MORE than what we paid. I know Sharee fixed hers too and she also had heaps of rock. Try not to stress (easier said than done I know) and hopefully the sales guy is right in saying they'll be under $9,000. Happy at Home Re: HELP can they change the price from tender to contract 12Aug 25, 2008 1:14 pm penny73 So I am gathering from the posts I have read so far that they cannot increase costs after tender unless I make a change? IS that correct?? Correct - the only way prices will increase after tender is if you make changes and add upgrades. Happy at Home Re: HELP can they change the price from tender to contract 13Aug 25, 2008 2:40 pm Hi penny
we were given an estimate of $10,000 by PD in sales quote and when we went for tender the actual site cost came up for $12,000 (not bad). i signed up my ontract today and was confirmed that tender doesnt change, so the site costs that they quote you at tender appointment become fixed after you accept it. I would say the site costs increase to $15000- $20000 when there is too much fall on the land, when there are trees on or just somewhere near the block or if there is rock in the land. There can definitely be other factors too, however if your block of land is pretty flat and no rock, and no such factors that may create hinderance during the building process, the site costs must come as pretty normal. Also, whatever they charge you they will have an explanation to those charges. With TBA prices in the sales quote, it really depends on the item, generally they put TBA on the sales quote when the price is given to you after the estimators measure it, and as i said it depends from item to item, something like adding a door maybe small, however changing the whole layout may come up as a bigger charge. Re: HELP can they change the price from tender to contract 14Aug 26, 2008 10:05 am We were advised during our contract appointment that the site cost ammount on our block could still change, as the developer still has some work to do in regards to fill and levelling of the land. Can't recall though if there was a note or something to that effect in our contract. Re: HELP can they change the price from tender to contract 16Aug 26, 2008 5:13 pm I've signed the Tender and the Contract and still the prices are not absolutely 100%. In our situation, we have an existing house in the way, and need to do further soil tests to see what's under the house once it is removed. They also need to get an engineer in to re-asses the land for tree roots once all the trees we've allocated to be removed have been. Our site costs could increase a little, but I'm not too concerned as we were made fully aware of it...and I just want my new house!
Good luck! Henley - Wilshire Mk 3 ... I love my house!! Site start: 4th Feb 09 Handover: 10th Sep 09 Blog: http://stormygirlscastle.blogspot.com/ Build Thread: viewtopic.php?t=7166 Hi, you've probably already resolved this, however, Commbank will probably pay the funds to you after you send evidence the work is done regardless the change in the quotes. 1 35331 2 2964 Ask the council if there is a chance of getting build over easement exemption. Sometimes easements are unused and 24cm is not all that much. Good luck. And yes any builder… 2 13781 |