Browse Forums Building A New House 1 Apr 15, 2020 3:00 pm I am doing a Knock Down and Rebuild. I have paid the Tender fee and have signed the Tender. I have now received the Architectural Plans, and contract. The builder wants me to sign the contract prior to DA plan submission to council. The Tender states the DA plan will NOT commence until a Building Contract is entered. My concern is, after signing the contract, and if the council rejects or amend the DA plan, I will be devastated. It took the builder and I a lot of time and effort for the modifications to the plan and the house size is stretched to the maximum to utilise the small block of land. The contract states that if I wrongfully ends this contract, I have to pay the builder damages in the sum equivalent to 15% of the contract price. I have no option but to proceed to sign the contract, hopefully for minor amendments to the DA Plan. It's a big risk for signing the contract before your DA plans gets approved. I appreciate your response and advice for those who have or are building with this problem. Thank you Re: Signing Builder Contract before DA Approval 2Apr 15, 2020 3:07 pm Council generally communicates what needs to be changed and why. So if you are following their guidelines, you shouldn't have any issues approving. If you want to protect yourself, you need to do your homework: download all the relevant council requirements and validate your proposed plans over them. Architects often miss out things. Re: Signing Builder Contract before DA Approval 3Apr 15, 2020 4:36 pm I recommend you don't sign Building contracts unless the Development Application (DA) is approved There is nothing stopping you doing your own design,engineering DA and then getting 3 builders to quote OT you are building in uncertain times ..protect yourself against builders...own your plan copyright, DA and if your builder is not competitive find another Cancelling Contract/HIA Advice Cheers Chris Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Signing Builder Contract before DA Approval 4Apr 16, 2020 3:00 pm alexp79 Council generally communicates what needs to be changed and why. So if you are following their guidelines, you shouldn't have any issues approving. If you want to protect yourself, you need to do your homework: download all the relevant council requirements and validate your proposed plans over them. Architects often miss out things. Thank you for your response alexp79. The builder has followed the guidelines but slightly stretched to the limit because of the small block, and the house also to the maximum length. The builder has honor all my requests, and kept costs to a minimum. The relevant council requirements is difficult to understand and I can check only certain areas. Re: Signing Builder Contract before DA Approval 5Apr 17, 2020 1:18 pm StructuralBIMGuy I recommend you don't sign Building contracts unless the Development Application (DA) is approved There is nothing stopping you doing your own design,engineering DA and then getting 3 builders to quote OT you are building in uncertain times ..protect yourself against builders...own your plan copyright, DA and if your builder is not competitive find another Cancelling Contract/HIA Advice Cheers Chris Thank you for your response especially the links which provided me with more incidents about the subject matter. I agree with you not signing the building contact until the DA is approved by the council. At this stage, I have not. If I do, the Tender will be binding the building contact. However, I have signed the Tender, which provided required documents like Architectural Plans plans, Geotech engineering, building permit etc., The deposit is nil, and no payment until stage one of the progress payment, when the concrete is poured. Upon signing the tender, the builder advised they will not submit the DA if the building contract is not signed. This is a reputable builder as they have complied with all my requests (modifications to plans and siting etc,) and have kept the cost to a minimum. We have worked together for a few months on the plan modifications, upgrade and maximised the building plan on the small block of land, where the boundaries are very close to the building (my agreement). They have also allow building time to be extended beyond their 28 weeks to 48 weeks because I need time for KDR and give notice to my tenants for the house to demolished. I will be devastated if the plans gets amended. That's why I need DA approved before signing the contract. I have a lengthy discussion with the builder, and they won't do it as it is their business procedure. After signing the contract, and I wrongfully exit from it, the penalty is 15% of the contract price. If this is a larger block of land and the house plan siting is within guidelines, I would have no hesitation in signing the contract. I thank you StructuralBIMGuy for your response . Re: Signing Builder Contract before DA Approval 6Apr 18, 2020 10:58 am Having just gone through the process what I will say is check, double check, tripple check and get someone else to check before signing the contract. Once you sign those documents it is all a one way street in their favour. No matter how nice they seem they start charging you to change so much as a screw. They are very quick to modify in their favour. We took months to come up with the concept plans and you think you have everything sorted, then you get back the engineering plans and little things seem to dissapear and change and if you arnt on to it and sign them you are locked in. Like others have said if I had my time again I would get my own plans and spec drawn up and then get the builders to price on your terms and conditions not theirs. Re: Signing Builder Contract before DA Approval 7Apr 18, 2020 11:11 am OT, Interesting article today on misinformation, here Coronavirus: Facebook alters virus action after damning misinformation report The top professions have been saying this for years about facebook, Instagram et al You shouldn't put your health nor wealth at risk Avaaz report Cheers Chris Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Signing Builder Contract before DA Approval 8Apr 18, 2020 12:13 pm There is NO reason why you need to sign the contract prior to approvals, and if you have handed over that amount of money you should basically be covered for all associated costs to get it approved Feel free to pop into a private message, I am unable to write down my experiences in full public view Re: Signing Builder Contract before DA Approval 9Apr 18, 2020 2:04 pm Brett0004 Having just gone through the process what I will say is check, double check, tripple check and get someone else to check before signing the contract. Once you sign those documents it is all a one way street in their favour. No matter how nice they seem they start charging you to change so much as a screw. They are very quick to modify in their favour. We took months to come up with the concept plans and you think you have everything sorted, then you get back the engineering plans and little things seem to dissapear and change and if you arnt on to it and sign them you are locked in. Like others have said if I had my time again I would get my own plans and spec drawn up and then get the builders to price on your terms and conditions not theirs. I have gone through the contract several times and highlighted the pertinent points. Next week to the solicitor to review the contract. It's the builder business policy to sign the contract before DA application approval. How can anyone sign a contract without knowing the outcome of the house plan being approved?. Another builder business policy is DA plan approval before signing the contract. Unfortunately, the house plan was not suitable. I have refused to sign the contract, and the builder came back to me and suggested that we negotiate and discuss, hopefully to make some amendments to the contract towards both parties agreement. BTW I have no hesitation in signing the contract, if I can get some guarantee that the house plan would not be amended by the council. I am not concern about the house siting. Re: Signing Builder Contract before DA Approval 10Apr 18, 2020 8:55 pm see if your council has a pre approval process or a “duty planner”. They should identity any obvious issues with the architectural plans for you prior to submission. Setbacks, site area, stormwater, sewage drainage are common issues. KDR will also cause some extra foundation costs Re: Signing Builder Contract before DA Approval 11Apr 19, 2020 10:10 am [quote="Pulse":1drv2yow]see if your council has a pre approval process or a “duty planner”. They should identity any obvious issues with the architectural plans for you prior to submission.
Setbacks, site area, stormwater, sewage drainage are common issues. KDR will also cause some extra foundation costs [/quote:1drv2yow] Thank you Pulse for providing a further option which I am not aware of. I will definitely enquire with my council. 14/05/20 Edited: Visit the council, and saw the Duty Planner. He advised the front and sides offset is fine but the rear would not pass guidelines approval. The provision for Landscape is inadequate, and is not acceptable. Furthermore, the rear is in a sewerage encasement zone. Re: Signing Builder Contract before DA Approval 12Apr 27, 2020 11:51 am Will get my solicitor to include a clause for no changes to house plan dimensions of length & width. You feedback is appreciated. https://www.ibuildnew.com.au/blog/building-new/how-to-build/conveyancing-new-build/ Contract Variations The contract could have allowances for the builder to make changes to the build. For example, minor changes may need to be made to the plans because of council planning requirements. Therefore there should be a provision in the contract to allow the purchaser to cancel the contract should these changes significantly affect the property. Re: Signing Builder Contract before DA Approval 13Apr 27, 2020 11:57 am Step 4 "Once you signed the HIA contract the builder will submit your building applications" as shown in the attached image. I disagree with this standard procedure. What are your thoughts? https://www.ibuildnew.com.au/blog/building-new/knockdown-rebuild/knockdown-rebuild-timeline/ [img=647x450]file:///C:/Users/user/AppData/Local/Temp/msohtmlclip1/01/clip_image001.jpg[/img] Re: Signing Builder Contract before DA Approval 14Apr 27, 2020 12:02 pm Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Signing Builder Contract before DA Approval 15Apr 27, 2020 1:06 pm StructuralBIMGuy Force majeure and COVID-19 – what you need to know now. It is complex and depends how you relate this to your circumstances. https://www.holdingredlich.com/force-majeure-and-covid-19-what-you-need-to-know-now Thank you. I have this in my discussion with my solicitor Re: Signing Builder Contract before DA Approval 16May 17, 2020 12:07 pm Builder still insisted on signing the contract before council approval. Negotiated with a few amendments to the contract. The final offer from the builder is to sign the contract, and if I rescind from the contract, the penalty is a payment of 4.5% (instead of 15%) of the contract price.
After careful consideration, I advised the builder my decision not to proceed with signing the contract . I now will loose my deposit. My research, and friends told me that I must be out of mind to build during the COVID-19. Last Sep 2019, heaps of builders went into liquidation. If that happens whilst in the midst of building, you can forget the builder's insurance, difficult to find another builder to take over, and the cost will exceed the balance of the contact price. During this COVID-19, news and social media revealed new building contracts are drying up. I am going for renovation. Thank you for all your feedback. Re: Signing Builder Contract before DA Approval 17May 17, 2020 2:22 pm leeroy17 Builder still insisted on signing the contract before council approval. Negotiated with a few amendments to the contract. The final offer from the builder is to sign the contract, and if I rescind from the contract, the penalty is a payment of 4.5% (instead of 15%) of the contract price. After careful consideration, I advised the builder my decision not to proceed with signing the contract . I now will loose my deposit. My research, and friends told me that I must be out of mind to build during the COVID-19. Last Sep 2019, heaps of builders went into liquidation. If that happens whilst in the midst of building, you can forget the builder's insurance, difficult to find another builder to take over, and the cost will exceed the balance of the contact price. During this COVID-19, news and social media revealed new building contracts is drying up. I am going for renovation. Thank you for all your feedback. Sad to hear you are going for a renovation now, unfortunately some builders are just stubborn, other builders I know are very flexible and will wait for approval prior to contract Re: Signing Builder Contract before DA Approval 18May 17, 2020 2:28 pm leeroy17 Builder still insisted on signing the contract before council approval. Negotiated with a few amendments to the contract. The final offer from the builder is to sign the contract, and if I rescind from the contract, the penalty is a payment of 4.5% (instead of 15%) of the contract price. After careful consideration, I advised the builder my decision not to proceed with signing the contract . I now will loose my deposit. My research, and friends told me that I must be out of mind to build during the COVID-19. Last Sep 2019, heaps of builders went into liquidation. If that happens whilst in the midst of building, you can forget the builder's insurance, difficult to find another builder to take over, and the cost will exceed the balance of the contact price. During this COVID-19, news and social media revealed new building contracts is drying up. I am going for renovation. Thank you for all your feedback. This builder is really a PITA. So sad to hear you lost your $15K, but possibly now you can work with the designer to come up with your own design and then apply for DA for you first? Then you can start looking out for the customer builder who will be willing to build to your design. Re: Signing Builder Contract before DA Approval 20May 17, 2020 3:14 pm leeroy17 I am doing a Knock Down and Rebuild. I have paid the Tender fee and have signed the Tender. I have now received the Architectural Plans, and contract. The builder wants me to sign the contract prior to DA plan submission to council. The Tender states the DA plan will NOT commence until a Building Contract is entered. My concern is, after signing the contract, and if the council rejects or amend the DA plan, I will be devastated. It took the builder and I a lot of time and effort for the modifications to the plan and the house size is stretched to the maximum to utilise the small block of land. The contract states that if I wrongfully ends this contract, I have to pay the builder damages in the sum equivalent to 15% of the contract price. I have no option but to proceed to sign the contract, hopefully for minor amendments to the DA Plan. It's a big risk for signing the contract before your DA plans gets approved. I appreciate your response and advice for those who have or are building with this problem. Thank you Hello! Absolutely Do NOT sign a building contract before you have full Development Authorisation from your Council. Without it you cannot build......Yet you would be beholden to clauses in the Builder's Contract. Also, do not believe that all Councils do the right thing either....or in fact any of them in the Development Industry! I am speaking from experience. I had a significant extension organised by an Architect , who was the Applicant. I got full proper Development Authorisation from the Council and then, without my knowledge, Council staff substituted falsified Engineering documents for the Footings and sub structure of my home build just before (probably literally days before) the start of the construction via some form of back door deal......without going through the Applicant or notifying me, the owner - there is more to this horrendous and disgusting situation, - I won't bore you on your post here. Please be very careful. Happy to answer any questions. Been in a similar position and we decided to let the builder go. Some of the PSA money goes to engineering so we at least got those documents and they actually refunded us… 2 6014 1 2884 You talk about deletions, are they variations or PS and PC adjustments? pleas list them 1 16455 |