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Land is missing soil

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We have a contract on a block of land just over 700m2 and flat. The previous owner had dug out 2.5m wide x 0.60m deep of 3/4 of the block long. We are having struggles with the builder saying the would need to cut it for a level building pad? Does this sound right? We are first home owners so we don't know. Attached a photo for help.
It depends what you mean by flat, sometimes there is a gentle slope over the lenght/width of the block that may necessitate some cut and fill. I assume you don't have access to a survey plan.
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