Browse Forums Building A New House 1 May 22, 2020 11:37 pm Timeline: 1. We purchased a block of land with our builder and agreed to build a double storey house. 2. We paid a fee for the builder to commence site tests, a tender and the house design/floor plan. 3. Once the plans were finalised, we agreed on the terms of the build contract. 4. The builder submitted a variation once the engineering plans were received for additional piering due to a P soil class. Question: Under our HIA contract (NSW version) we are not liable for any additional site costs if the builder had known about the site conditions prior to the execution of the contract and provided the site conditions have not changed. Now I believe my builder knew about my site conditions before we signed the build contract. One, he helped us purchase the block of land and knew the land was previously a creek. Two, the soil test we paid for in our fee would of given him a soil classification which he could of discussed or raised with us before we signed the contract. Do you think I am in a position to not pay the additional costs? Had the builder told us before hand we could of adjusted our contract price to include the cost. I feel like our builder roped us in on a low cost and is now looking to do a cash grab on us. How can I resolve this? Should I go to fair trading? Re: Additional Site Costs 2May 25, 2020 1:09 pm Hi First-Timer1, Can you confirm if the builder had the structural engineeriing drawings complete before you signed the contract? If you had signed the contract before receiving the engineering, the builder is correct. Yes the soil tests identify the conditions of the block, this does not mean that they are aware of the costs that will be associated with the engineering of the home (additional concrete piers, reinforcements, thicker slab etc etc). Builders are generally not structural engineers and that is why they outsource these works. Also, were the site costs fixed when you signed the contract? Were there any terms in the contract that stated conditions in regards to the fixed site costs? Is there anywhere in writting that states all costs are fixed? From my experience, going to Fair Trading will not help unfortunately. Re: Additional Site Costs 3May 25, 2020 4:40 pm Thanks. The GeoTech Report was done prior to the build contract being signed. The architects plans were also finalised prior to the contract being signed. The engineering report was done after the contract was signed, however it is based on the on the GeoTech report (e.g. bore holes, and soil class) that was done prior (as noted in the engineering plans). My understanding is that a reasonable builder should provide the results of the GeoTech report and advise of any potential site costs that we may face due to our soil conditions etc. This further supported by the NSW Building HIA contract, I believe it is Clause 14 which is designed to protect the owner. Re: Additional Site Costs 4May 25, 2020 4:50 pm But it is engineer who provides actual design. However, I would agree that reasonable builder could have asked engineer for his opinion before final designs are provided and informed you respectively. Re: Additional Site Costs 5May 25, 2020 5:04 pm Thanks Alex, I accept that the builder wouldn't know the exact implications, however the information of the site conditions was available to the builder and known to them prior to the contract being signed and that's the point I think I can argue with Fair Trading. In addition our builder engaged a engineer and surveyor from the same company. Re: Additional Site Costs 6May 25, 2020 5:17 pm The Clause I refer to is; "The builder is only entitled to payment for such extra work if the actual site conditions differ from those either: a) disclosed or known to the builder prior to this contract being signed; or b) shown in the contract documents." The overarching heading is "Hidden Site Conditions" Re: Additional Site Costs 7May 26, 2020 11:23 am Did Geo Tech report prior to contract signing disclose a "P" site classification? Foremost Building Expert in Australia,assisting with building problems/disputes, building stage inspections,pre-contract review advice for peace of mind 200 blogs http://www.buildingexpert.net.au/blog Re: Additional Site Costs 8May 26, 2020 11:50 am building-expert Did Geo Tech report prior to contract signing disclose a "P" site classification? Yes it did and depth of the bore holes. Re: Additional Site Costs 9May 26, 2020 11:50 am First-Timer1 building-expert Did Geo Tech report prior to contract signing disclose a "P" site classification? Yes it did and depth of the bore holes. But we only found out all that after the contract was signed. Re: Additional Site Costs 10May 26, 2020 11:56 am I am not familiar with NSW but it seems you have a good chance to avoid the extra cost Get a good building consultant to assist you Foremost Building Expert in Australia,assisting with building problems/disputes, building stage inspections,pre-contract review advice for peace of mind 200 blogs http://www.buildingexpert.net.au/blog Re: Additional Site Costs 11May 26, 2020 12:15 pm building-expert I am not familiar with NSW but it seems you have a good chance to avoid the extra cost Get a good building consultant to assist you Can I ask what a reasonable builder should of done once they got the Geotech results? Or what is the industry standard? Re: Additional Site Costs 12May 26, 2020 5:04 pm If builder knew site conditions were "P" then that should have been allowed for in the contract. Builder would have built "P" class slabs and known the cost so what is the problem? Foremost Building Expert in Australia,assisting with building problems/disputes, building stage inspections,pre-contract review advice for peace of mind 200 blogs http://www.buildingexpert.net.au/blog Our standard double-glazed window is tested to achieve, Rw 34, and can be glazed to suit Rw 39. The price is good too... 3 9479 I am not sure whether Perth has its own way of doing things in regards to this. Most of Perth has class A (sandy soil), except for some areas near rivers or hills. 2 13107 Is anyone building with Mojo and have a recent site cost tender 0 15954 |