Browse Forums Building A New House 1 Apr 27, 2020 10:40 pm Hi, I signed a 'building agreement' and a preliminary work agreement with Stateman Homes for building a new home in SA. Their preliminary payment is $2200 and they charge $1000 on signing, $700 at time time of receipt of master plans and $500 at time of receipt of the construction footing report. I have only paid $1000 so far and wish to cancel the process. At this stage, I have neither received the master plans nor the construction footing report. Could I get advice if the 'building agreement' signed is the same as the 'HIA contract'? I understand the HIA contract is only prepared after the preliminary works have been done. If I cancel now, would I just lose my deposit of $1000 or will the builder have the right to claim or charge me more? Thank you. Re: Penalties for cancelling before preliminary works assess 2Apr 27, 2020 11:08 pm We built with Statesman and our understanding is that you can pull out but will lose your deposit. Some people get the soil test and and construction footing report and pull out after at that stage, because the footings come in a lot more expensive than they had budgeted for. I’m just unsure whether you will be expected to pay the full $2,200 or are able to pull out now, before you’ve paid anything further. Best of luck with everything. Re: Penalties for cancelling before preliminary works assess 3Apr 29, 2020 1:37 am Thanks Bebbsy I just wasn't clear how much I will be liable for if I did cancel. As the total of $2200 is paid in 3 instalments. However, it has only been just over a week since my file was accepted so I am not sure how much has been done so far. In the building agreement I think there is a clause which allows them to charge for any work which has been done by the builder so far. How did you find building with Statesman homes and how was the quality? Was the final contract close to what they quoted you initially? Thanks again! Re: Penalties for cancelling before preliminary works assess 4Apr 29, 2020 9:15 am Hi James2020 I recommend you email them asap requesting a full refund citing Force Majeure Building Contract Please let others know how you go Pity you don't have a SA Building Commission like WA? Cheers Chris Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Penalties for cancelling before preliminary works assess 5Apr 29, 2020 11:52 am james2020 Thanks Bebbsy I just wasn't clear how much I will be liable for if I did cancel. As the total of $2200 is paid in 3 instalments. However, it has only been just over a week since my file was accepted so I am not sure how much has been done so far. In the building agreement I think there is a clause which allows them to charge for any work which has been done by the builder so far. How did you find building with Statesman homes and how was the quality? Was the final contract close to what they quoted you initially? Thanks again! Hi, we were happy with Statesman Homes. I’ll pm you re the cost. Cheers Re: Penalties for cancelling before preliminary works assess 6Jun 11, 2020 2:53 pm james2020 Thanks Bebbsy I just wasn't clear how much I will be liable for if I did cancel. As the total of $2200 is paid in 3 instalments. However, it has only been just over a week since my file was accepted so I am not sure how much has been done so far. In the building agreement I think there is a clause which allows them to charge for any work which has been done by the builder so far. How did you find building with Statesman homes and how was the quality? Was the final contract close to what they quoted you initially? Thanks again! Hi James I'm building in SA with Fairmont and am wanting to go ahead and cancel my building contract, although I am almost to construction phase but my circumstances have changed. I wonder how you got along with Statesman, did you end up cancelling and were you charged any additional fees? I built with Statesman almost 5 years ago and had quite a few problems with the build and the finish was not quite what I expected and I had many items that needed maintenance. Thanks for any advice. Re: Penalties for cancelling before preliminary works assess 7Jun 21, 2020 1:25 am Hi James, we are in the very similar situation with you. We are building in SA too. We just came across your post when we were googling info about footing report. Would you mind dm me your contact so we can discuss together? Thank you in advance Re: Penalties for cancelling before preliminary works assess 8Jun 21, 2020 1:46 am My experience is that the PPA is not the same as the HIA contract and you can walk away but you will lose your deposit. In terms of being charged further for other works, its best if you emailed them something like you can’t proceed any further due to unforeseen circumstances and then just ignore their emails/phone calls I believe that liquidated damaged should be amount of actual loss to the owner from the delays. The issue in all of this is building industry lobbying and contributing to… 5 3416 In NSW the maximum deposit for building work is 5% until the builder provides HBCF insurance 1 4814 MBA and HIA both have sub contract agreements, check them out 2 7303 |