Building A New House
Jul 19, 2016 12:24 am
We are planning to build with Clarendon and we've received our initial tender here (i've removed any identification info for privacy).
We are going to re-tender due to some changes, so would be glad to hear from your experience. For example how did you manage to get some of the discounts at tender and what way did you approach the negotiation? what costs did they take out for you?
Below is a quick Q&A i've got back from Clarendon recently before going to the re-tender.
Q: Extend the existing tender expiry til 1 March 2017 with no extra charge, a number of builders have a tender period of approx 9 months as standard and I confirmed with them that the 9 months tender period starts from the date of accepting the tender.
A: The tender was originally a 291 day tender as the additional 90days was included as part of your promotion – you elected to take out the 90day extension and were given a $3,000.00 credit for this. If you want to go back to the 291 day tender period we will delete the credit of $3,000.00.
Q:Clarendon to change the liquidated damage to $500/week (or $71.4/day) in the building contract if Clarendon exceeds the standard building period of 46 weeks. I've researched thoroughly and have spoken to people who have built with Clarendon and i'm aware that the liquidated damage rate can be increased.
A: Management have agreed to an increase to $25.00 per working day liquidated damages.
Q: At our original estimate there was no extra cost would be involved for the zone allowance, there are a number of Clarendon homes being built near me so there should be cost efficiency for Clarendon instead of any extra costs for client, can this cost be removed from the tender?
A: The Zone Allowance will not be removed from the tender. This allowance is to cover the additional charges from our
contractors and supply deliveries for extra travel time out of their usual working area.
Q: The final building contract to be changed to reflect that the date that works commence on site is stated as the contract start date (not the later of 20 days from provision of evidence of funding).
A: Clarendon does not agree to amend the contract. This is a standard HIA that the builder has to be on site within 20 working days of all approvals being received, i.e CDC approval, water board approval, Demolition of existing dwelling has occurred and you have provided Clarendon the Hygienist Clearance Certificate, and we have received your Authority to commence construction from your Lending Authority and forwarded that to Clarendon. Clarendon will endeavour to get to site as soon as possible, once all approvals are received, including your Authority to commence construction, and once all purchase orders have been placed to enable construction to start. There is no benefit to the builder to delay construction start.
Q: Alter the contract to stipulate that rainy days can only be claimed prior to the roof tiles being installed and only if there has been more than 5 mm of rain. Plus the builder should be informing me of delays within days of the delay happening, not at the end of the project.
A: Clarendon does not agree to amend the contract. Rain delay days are calculated at the end of the build. I have been advised by the Construction team, that they only calculate rain delay days up until lock up stage, which is when the roof is on the bricks are up and the front door is on to enable lock up. (garage door may not be on at this time). They calculate rain days from 0.5mm. I have attached Clause 48 of the building contract for your reference.
Q: Regarding the site cost (I recall tender presenter stating that it's fixed and whatever happens it won't exceed the estimated amount), is this correct? Is rubbish removal costs included during build?
A: The site costs are fixed subject to any provisional allowances.
Q: Also on the topic of site cost, assuming it's a fixed cost Clarendon should have the structural and engineering details, can I obtain a copy of the structural/engineer report on this modified Sheridan 35, if not then for me to receive a report on the standard/preliminary Sheridan 35 for review.
A: I am assuming that you are referring to the Borehole report here, I have attached a copy of the Borehole report for your reference.
Q: I would require full reconciliation of all invoices of costs throughout the build, is this possible ? is there agreement between Clarendon and its subcontractor for not supplying invoices for confidentiality reason?
A: We do not provide copies of all invoices for all costs throughout the build, however, any invoices raised relating to your Provisional allowances for items that could not be determined until on site, such as the PA for sewer connection, or the PA for Temporary Work Zone (parking Zone) Allowance would be provided to you.
Q: I've received independent advice regarding my site from an internal source with Burwood council that the $20k for traffic control and $10k for sewer connection is too high, these need to be revised. Please find out what's a more realistic estimated amount and outline specific details of the provisional allowance.
A: When the Provisional Allowances are nominated, they are based on the average of past jobs. As they are Provisional Allowances, if they come in as not required, then the amount will be credited back. If the amount required is less than the PA the difference will be credited back. If the amount required comes in more than the PA amount a variation would be raised accordingly. The sewer PA will remain as is, however, I am waiting on advise from the Area Site Manager as to his opinion on the PA for Parking Zone Allowance as to whether he feels this would be required. I will advise once I have received the response.
Q: I've consulted someone regarding including the site handling cost for granny flat, this should not be included as the distance from the main dwelling is far less than 25 linear metres and plus that the site is not a difficult access site.
A: The Additional site handling allowance due to Granny Flat is because deliveries to the Granny Flat would have to be carried from the front boundary of the house to the rear of the property where the Granny Flat is positioned as the trucks and Cranes cannot get access to the rear yard. And for the return trips for suppliers and trades, due to two separate Granny Flat being built on the site.
Q: In addition to the main ensuite, all bathrooms in the main dwelling to have floor to ceiling tiles, can I negotiate a discount on the quoted cost for these?
A: We can provide the cost to provide floor to ceiling tiling to all bathrooms in the main dwelling. Any potential discount that would be considered by Management would be on the total tender amount, once the retender on the new chosen design is presented.
What does everyone think about above? Thanking everyone very much in advance
Building a modified Wentworth35 in Burwood NSW
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