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 1 Aug 28, 2008 12:25 pm 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 Re: "provisions" in contract 2Aug 28, 2008 12:32 pm I have no provisional sums at all. But that is with a volume builder.
If you are building with a smaller builder I think you are more likely to have provisional sums for fittings as you have far more choice than with a volume builder. That's pretty normal. Provisional sums for site works etc would worry me though. Who are you building with? Jo I leave you to fend for yourself, figure things out yourself. Terrence Malick Re: "provisions" in contract 3Aug 28, 2008 4:02 pm We asked for a number of provisional sums to be put in with PD. This was things like electrical, driveway, fencing, landscaping the reason being that our loan pre-approval was structured on the quote so we packed as much in there as we could so we wouldn't have to coff in anything ourselves. Re: "provisions" in contract 4Aug 28, 2008 4:21 pm Same as mikkyG, we put PC items into our contract to ensure they were included in the loan. This was to provide a bit of a safety net. We have continued to save and therefore hope to not use the full loan amount however, if we have any emergencies between now and completion we have options . 'We make a living by what we get, but we make a life by what we give.' - Winston Churchill Re: "provisions" in contract 5Aug 28, 2008 4:38 pm Davino, So far half our contract is PS. We found this is the best way for example.......
Provisonal sum for cabinetworks is $20,000 you have a cabinet maker that can do it for less cancel cabinetworks from builder and they give you back $20,000.... If it is included in your contract price and not as a provisional sum they can and are in their rights to only give you back a percentage of that$20,000 So you may only get back $15,000 and they get to keep $5000. Just for the privelidge of quoting you. Re: "provisions" in contract 6Aug 31, 2008 6:22 pm Hi,
All my provisons are for site works, i am building with Allworth. From my knowledge their estimates are accurate unless there are unknown circumstances that come up like finding rocks, extra piers etc. So no-one has provisions for site works? Re: "provisions" in contract 7Aug 31, 2008 8:08 pm davino So no-one has provisions for site works? We also have provisions for site works, which will become fixed after the final site inspection after the land is titled. But, we needed amounts in the contract to move forward with financing. We actually asked for them to be loaded so that if the estimates come back higher than expected, we wouldn't have to worry about requesting additional funding. Re: "provisions" in contract 8Jan 30, 2009 9:19 pm davino Hi, All my provisons are for site works, i am building with Allworth. From my knowledge their estimates are accurate unless there are unknown circumstances that come up like finding rocks, extra piers etc. So no-one has provisions for site works? Hi Davino, I am building with Allworth Homes too in Sydney. I have provisions for site works too. I was told by Allworth that the provisions most likely be eventuated into credit back to me, and they had the provisions against site work just as a safety net. Just wondering what eventuate in the end for you? Did you end up paying more for site works (or more than the amount you signed on your contract)? I didn't hear too many people complaining about Allworth Homes on this forum site, which is a good sign I guess it is in human nature to voice out their dissatisfactions. It'd be great to hear from Allworth customers on their experiences. My experience so far with them had been quite pleasant. I can post my progress with them soon if there are people out there that are considering Allworth. "provisions"in contract 10Jan 31, 2009 8:03 am Allworth built our very first home years ago. Being a first home buyer in those days our funds were limited. We found their service to be good, the build time was reasonable but no where near the 15 weeks they promised in the contract. At the time we thought their quality was good... in the late 80's project homes were pretty plain and simple...it was basically how many squares for how many dollars.
When we rebuilt recently we looked at Allworth again but were very disappointed as they appeared to be marketing the same plain basic homes as before ..they didnt seem to have moved with the times... basic facades basic layouts and finishes, flatter profile roof pitch than other builders....all the old fashioned things we had seen before....new builders had emerged on the scene and were producing what we thought were homes designed for todays living... well designed indoor and outdoor living areas, higher ceilings wih maybe a detailed coffer, architectural facades and detailing... we found these features quite important when we came to sell our second built home Our only disappointment with our Allworth home at the time was when we came to sell it. The purchasors building inspection found termite damage in the roof on the timber frame... we thought we had got a good termite proof frame and termite slab protection from the builder but it was clearly inadequate... we were told during fixing it up (which was quite expensive) that we should have had annual inspections and treatments. .. but of course we didnt do it and i believe it costs quite a bit. It was suggested the builders termite treatment wasn't the best and easily gets damage and breached during the construction period. Our next builder used Steel frames and a Kordon termite system so our minds were more at rest ... this all seems to help with the resale value when you come to sell In terms of the price Allworth were pretty cheap... but now we are a little more experienced and mature we realise you only get what you pay for. They pretty well kept to their quote apart from some site cost provisions... which came as a shock when you are a first homebuyer. We signed up on the HIA contract and all in all everything was ok... we would build with them again if they came up to date with their plans/facades and used a better termite protection and steel frames. Life is an enjoyment, enjoy it 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 16556 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 |