Browse Forums Building A New House Re: Porter Davis Summer Promotions- Is it too good to be tru 3Feb 03, 2019 7:54 am Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Porter Davis Summer Promotions- Is it too good to be tru 13Mar 27, 2019 1:27 pm mazum The only down side which I think is that PD will get most of the payment before the last stage completion as the stage instalment will be calculated on the bigger amount than the actual lesser amount. Does it mean PD won’t give discounted money back? Re: Porter Davis Summer Promotions- Is it too good to be tru 15Mar 27, 2019 9:44 pm Sidhartha mazum The only down side which I think is that PD will get most of the payment before the last stage completion as the stage instalment will be calculated on the bigger amount than the actual lesser amount. Does it mean PD won’t give discounted money back? They will, but understand the staged development model. Let me explain it with an example. Assume the contract price is $450,000 and we are getting $50,000 discount. So, essentially we are paying only $400,000. Stage 0: Contract Finalising Stage: We need to pay 5% of the contract amount. If the contract value was $400,000, then at this stage we should pay $20,000. But, the contract price is $450,000, then we need to pay $22,500. Extra payment is $2,500. Stage 1: Base Stage: We need to pay 20% of the contract amount. If the contract value was $400,000, then at this stage we should pay $80,000. But, the contract price is $450,000, then we need to pay $90,000. Extra payment is $10,000. Stage 2: Frame Stage: We need to pay 25% of the contract amount. If the contract value was $400,000, then at this stage we should pay $100,000. But, the contract price is $450,000, then we need to pay $112,500. Extra payment is $12,500. Stage 3: Lock-up Stage: We need to pay 20% of the contract amount. If the contract value was $400,000, then at this stage we should pay $80,000. But, the contract price is $450,000, then we need to pay $90,000. Extra payment is $10,000. Stage 4: Fixing Stage: We need to pay 20% of the contract amount. If the contract value was $400,000, then at this stage we should pay $80,000. But, the contract price is $450,000, then we need to pay $90,000. Extra payment is $10,000. Stage 5: Completion Stage: We need to pay 10% of the contract amount. If the contract value was $400,000, then at this stage we should pay $40,000. But, the contract price is $450,000, then we need to pay $45,000. But, now they will add the discount of $50,000. In actual we'll get $5,000 as refund. So, if we add all the payments we made till stage 4: $22,500 + $90,000 + $112,500 + $90,000 + $90,000 SUB-TOTAL = $405,000 Stage 5 Refund = -$5000 TOTAL = $400,000 So, actually there is no Stage 5 payment. We have no leverage at the end. PD has no financial interest to finish our Stage 5 soon. Check with anyone who built the house, Completion stage is always the most time consuming phase. In this case, PD has no motivation to finish it, except the penalty clause which will kick in after ~10 Months (I guess). Hope this clarifies. Re: Porter Davis Summer Promotions- Is it too good to be tru 16Mar 27, 2019 10:00 pm I can point out 2 major points in the TnC of the offer (with my limited legal understanding): 1. "To be eligible for this sale offer your land must title within 400 days of the date of your initial deposit." - Land should be titled within 400 days. 2. "Client must meet all milestone appointments set by Porter Davis to ensure site start date is met. (Refer to Procedure of Purchase Document). Any factors causing delays to the nominated site start date that are outside of the builders control, may result in the voiding of this offer." - All the staged payments are made timely. So, financial institution should not delay payments being made to PD. Rest looks alright to me. Re: Porter Davis Summer Promotions- Is it too good to be tru 18Mar 28, 2019 9:24 am mazum Sidhartha mazum The only down side which I think is that PD will get most of the payment before the last stage completion as the stage instalment will be calculated on the bigger amount than the actual lesser amount. Does it mean PD won’t give discounted money back? They will, but understand the staged development model. Let me explain it with an example. Assume the contract price is $450,000 and we are getting $50,000 discount. So, essentially we are paying only $400,000. Stage 0: Contract Finalising Stage: We need to pay 5% of the contract amount. If the contract value was $400,000, then at this stage we should pay $20,000. But, the contract price is $450,000, then we need to pay $22,500. Extra payment is $2,500. Stage 1: Base Stage: We need to pay 10% of the contract amount. If the contract value was $400,000, then at this stage we should pay $40,000. But, the contract price is $450,000, then we need to pay $45,000. Extra payment is $5,000. Stage 2: Frame Stage: We need to pay 15% of the contract amount. If the contract value was $400,000, then at this stage we should pay $60,000. But, the contract price is $450,000, then we need to pay $67,500. Extra payment is $7,500. Stage 3: Lock-up Stage: We need to pay 35% of the contract amount. If the contract value was $400,000, then at this stage we should pay $140,000. But, the contract price is $450,000, then we need to pay $157,500. Extra payment is $17,500. Stage 4: Fixing Stage: We need to pay 25% of the contract amount. If the contract value was $400,000, then at this stage we should pay $100,000. But, the contract price is $450,000, then we need to pay $112,500. Extra payment is $12,500. Stage 5: Completion Stage: We need to pay 10% of the contract amount. If the contract value was $400,000, then at this stage we should pay $40,000. But, the contract price is $450,000, then we need to pay $45,000. But, now they will add the discount of $50,000. In actual we'll get $5,000 as refund. So, if we add all the payments we made till stage 4: $22,500 + $45,000 + $67,500 + $157,500 + $112,500 SUB-TOTAL = $405,000 Stage 5 Refund = -$5000 TOTAL = $400,000 So, actually there is no Stage 5 payment. We have no leverage at the end. PD has no financial interest to finish our Stage 5 soon. Check with anyone who built the house, Completion stage is always the most time consuming phase. In this case, PD has no motivation to finish it, except the penalty clause which will kick in after ~10 Months (I guess). Hope this clarifies. Thanks Mazum for clarifying. Have you signed with PD? what plan are you building? Three options 1 Ask the liquidator 2 Find another PD customer and ask the source of their report 3 Pay for new report 3 13997 It will be neat but you won't have much freeboard. At least they are not weep holes. Are you in a high intensity rainfall region? The regulatory slope is only required… 3 8741 Firstly, if your house is still under builder's warranty (10 years in Victoria) you should have no need to crawl into roof space but let the builder handle it, unless you… 3 5850 |