Hi,
I've noticed that i have many provisions in my contract, therfore a better chance of the price increasing.
Can anyone give me an idea of how many provision amounts they have in their contract.
May give me peace of mind
Thanks
Browse Forums Building A New House Re: "provisions" in contract 4Aug 28, 2008 4:21 pm 'We make a living by what we get, but we make a life by what we give.' - Winston Churchill Re: "provisions" in contract 11Jan 31, 2009 4:27 pm we had around $40-$50K provisions for things like - extra strip footings and screw piles (which was slightly overspent on), double handling charges (for a narrow block on main road, which was massively underspent), floor coverings (which we cancelled and got done ourselves), electrical upgrades (done through builders consultant after contract), and and things like traffic management etc. Ended up spending a lot less than was allowed for, which was good. I guess God didn't use subbies... Re: "provisions" in contract 12Feb 01, 2009 7:34 pm Sjdtan - We are signing our contract with Allworth next week!
So hopefully 20 days from next Thursday we should be at the very beginning of our building adventure. Hopefully everything will go to plan! I look forward to hearing how your build goes. Good luck! Mez Re: "provisions" in contract 13Feb 01, 2009 9:00 pm I requested a tender from Allworth on 13/07/08 and signed contract on 8/12/08. So far they have been pretty good and the sales lady in Newcastle has been excellent.
Everything I asked for was put in the tender, the ammendments to plans I made were all correct. The process has gone very smoothly compared to the previous builder I was dealing with. Several people have told me they tend to overestimate on the site costs and you end up getting money back at the end. I hope they're right about that one Site works started 27/01/09. A little bit longer that the 20 days they promised at contract signing but the Christmas/New Year period got in the way causing the delay. My Customer Service officer in Sydney even sent an e-mail apologising for the delay. Re the comment above on termite protection, they use Termimesh. I have heard it is supposed to be good. Anyone had any experiences with Termimesh? I have started a blog for anyone interested in following my progress. Re: "provisions" in contract 14Feb 05, 2009 2:25 pm I am off to read your blog now!
We signed the contracts yesterday so now it is just a waiting game.... I 'll be following your build with interest! Mez Re: "provisions" in contract 15Feb 05, 2009 5:33 pm Congratulations Mez. I hope it all goes well for you.
I'm now following your blog as well. I had a good laugh about your colour selections. Mine was similar (a very stressful 3 hours) though I didn't have everything picked beforehand like you did. I think I have changed nearly everything since the initial selection and what I didn't change then, I changed at contract signing Re: "provisions" in contract 16Feb 05, 2009 10:40 pm Sorry if I sound a bit silly here, but how on earth do you manage to put provisions on your tender/contract?
Every item that we wanted to get a price for at tender time they added it as a priced item (therefore added it to the total figure at the end) apart from the upgrade on bricks which they gave us the pricing for 3 different bricks that we selected and they added it as NOTE. We are about to get into the contract with them (if we can sort out the fact that there are a few site costs not fixed at all, not even an estimate for them i.e. building over the sewer pipe) Can I now add items to the contract as provisional sums? do they have to cancel them if we don't want them or need them later? Re: "provisions" in contract 17Feb 06, 2009 9:14 am I didn't put the provisions in the contract, the builder did.
They are for site costs such as fill, piering, deep edge beam, rock excavation, etc. Basically anything it is hard for then to quote accurately went in as provisional allowances. Re: "provisions" in contract 18Feb 07, 2009 4:28 pm sorry to sound stupid - i am new to this.
Does a provision mean that it is only an estimate of the price of something (eg siteworks) and you either pay more or get money back if it incorrect? Is the max variation in price stipulated? also, not to sound too cynical, but if the job (again, for example siteworks) is done and comes back less than the estimate do you really believe that the builder will refund the money or is this more to protect them if the price is higher? thanks about to build our first home! Re: "provisions" in contract 20Feb 08, 2009 3:21 pm wallywombat7 sorry to sound stupid - i am new to this. Does a provision mean that it is only an estimate of the price of something (eg siteworks) and you either pay more or get money back if it incorrect? Is the max variation in price stipulated? also, not to sound too cynical, but if the job (again, for example siteworks) is done and comes back less than the estimate do you really believe that the builder will refund the money or is this more to protect them if the price is higher? thanks Yes, it's only an estimate. It could be more, it could be less. No max variation was stipulated. Some of my proviosional allowances were for: Additional fill 150 tonnes @$22 ton 60 lineal metres of piers @ $60 lineal metre There was also an additional amount to relocate the gas and electricity meter to the other side of the house. Their original quote had a fixed amount for this based on them being located on the closest wall to the location of the services. I wanted them located out of sight on the side of the garage so they added a provisional allowance to do this. Since they only started last week I don't know exactly how much fill was needed. I counted 35 piers and I know some of them were less than a metre deep but on the fill side I have no idea how deep they went. I assume that the piers need to go down until they hit rock or hard ground. I am also in a mine subsidence area so not sure how that affects things. I have been told from several people who have used the same builder that they got money back at the end as the builder tends to over estimate on provisional allowances so you are not up for any nasty surprises. I hope they are right! You talk about deletions, are they variations or PS and PC adjustments? pleas list them 1 16557 It seems very clear to me that your contract states that a security account does NOT need to be established so the answer to the builder is NO. If in doubt find a contract… 1 8505 10 12308 |