Browse Forums Building A New House Re: House and Land Package advice 6May 17, 2010 11:00 am You need to go verify all of this with the agent. When we paid our deposit for the house (we didn't go for a house and land package though), we signed a House Estimate which included all the things we changed and an estimate for site costs. We didn't opt for Fixed Price site costs though. Anyway, my point is, did you sign anything at all prior to contract? Like an estimate, or the like? Did the description of the package state that it's a fixed price package? Don't sign the contract until you figure it all out. Re: House and Land Package advice 7May 17, 2010 2:18 pm My understanding is that if you've got prime cost items in your contract, then you will have to pay any variances to these costs. From reading this forum, it is generally the site costs which blow out. Ours was only $1500 higher than was quoted, but I think is quite low compared to what others have. If you believe you were entering into a fixed price contract, i wouldn't sign a contract until it states that it is fixed price. contract signed: Nov 09 Released to Construction: 23 Jul 10 Slab poured: 9 Aug 10 Frame completed: 30 Aug 10 Windows & Gutters: 7 Sep 10 Bricks: 15 - 23 Sep 10 Roof: 24 Sep 10 Gyprock: 20 Oct 10 Lockup: 25 Oct 10 Kitchen: 27 Oct 10 Tiling: 6 - 9 Nov 10 Painting: 17 Nov 10 Carpet: 30 Nov 10 PCI: 15 Dec 10 Handover: 17 Dec 10 https://forum.homeone.com.au/viewtopic.php?f=31&t=35943 Re: House and Land Package advice 8May 17, 2010 6:58 pm Quote: think you'll find it very hard to get an "absolutely no extra charges, completely fixed price contract" Whilst I certainly agree that you need to clarify this well before you sign the contract - it is possible to get house/land packages with genuine fixed costs. We did a house/land package - the builder bought up a large parcel of land, and divided it into 34 lots for H/L packages. We initially paid a refundable $1000 deposit with our registration of interest and then 8 months later,when the land was titled, we signed a contract for the house price. This price factored in site costs and was fully fixed. Presumably the builder organised their own soil tests whilst waiting for the land to title and priced build costs accordingly. We spent another $15k at selections - this was upgradeing tiles, tapware, floor coverings, powerpoints etc but all this was things we chose to do - it would of been possible to build the house without spending a cent over the contract price if we stuck to all builders range items. Re: House and Land Package advice 9May 17, 2010 9:03 pm lealicious Did the description of the package state that it's a fixed price package? Don't sign the contract until you figure it all out. No, but the description of the package did state "included site costs". Are site costs the main thing I need to worry about? Please tell me what could blow out, and by how much? I don't want to be slapped with a 100k bill after all is done. :S Re: House and Land Package advice 10May 18, 2010 6:54 pm Just bumping this thread. In summary, what I wanted to know is: How much more can I expect to pay "if" I can't renegotiate to a fixed priced contract? Obviously, if I can renegotiate to what we already initially agreed upon, it would be preferable, but I also want to know how much I'm at risk to pay if I proceed with the "non fixed price contract". Variable costs such as site costs, rocks underground, soil tests, soil validity, etc. etc. Thanks. Re: House and Land Package advice 11May 18, 2010 8:27 pm That's a tough one. It really depends on so many factors. We had $15,000 built in for our footings etc, and it came to $16,500. Someone else on here encountered rock, and theirs ended up an extra $80,000. contract signed: Nov 09 Released to Construction: 23 Jul 10 Slab poured: 9 Aug 10 Frame completed: 30 Aug 10 Windows & Gutters: 7 Sep 10 Bricks: 15 - 23 Sep 10 Roof: 24 Sep 10 Gyprock: 20 Oct 10 Lockup: 25 Oct 10 Kitchen: 27 Oct 10 Tiling: 6 - 9 Nov 10 Painting: 17 Nov 10 Carpet: 30 Nov 10 PCI: 15 Dec 10 Handover: 17 Dec 10 https://forum.homeone.com.au/viewtopic.php?f=31&t=35943 Re: House and Land Package advice 12May 18, 2010 8:51 pm We chose to have our site costs fixed. We figured it was worth the peace of mind, and less stress if any nasty surprises arise, such as a large amount of rock removal. Dear J.K. Rowling, Your books are entirely unrealistic. I mean, a ginger kid with two friends? Sincerely, Anonymous Re: House and Land Package advice 14May 18, 2010 9:45 pm Elastic, what do you mean by a "true" H/L package??? Ours did not have a provisional sum for site costs - site costs were fully included. As stated in my earlier post, obviously the builder already has the results of soil tests and engineering reports before they draw up the contract. Re: House and Land Package advice 15May 18, 2010 10:41 pm Hi Helyn, I read your posts, I consider yours a true H&L package. What i dont consider true H&L packages are ones where builders advertise say the "elastic 300 with alfresco option" on lot 236 in XXX Estate. First of all they have only really just found a block of land that suits the size of a particular house. The land is actually owned by a seperate developer and sold under a different contract. Some of the H&L packages reserve land, but as soon as say someone wants that block with a differnet builder they can have it. H&L packages are simple for some people, me included, I went down this option but knew exactly what was in it, i actually only went down this option due to completeness. With the developer being the builder, you will find fixed site costs, usually because thy have already done there due diligence on the whole subdivision and know what there likely sites costs will be across the subdivision then spread it evenly. Fixed Site costs are good, theres this joint being built around the corner from me, i reckon they have taken away 6 truck loads of big rocks already, they have been digging them out for weeks, luck of the draw hey Re: House and Land Package advice 16May 19, 2010 12:21 pm Where are you building? I haven't heard of site costs being estimated as low as $2000 before. For most people I think it ranges between $5000-$10,000. (Assuming there are no abnormailities/other big issues) Land Settled: 29 March 2010 Pre contract & Deposit paid - 17 May 2010 Pre Start & Contracts Signed - 16 June 2010 Council Approval Received - 30 June 2010 Slab Down 30 July 2010 Plate High - Late August Lock Up - TBA Re: House and Land Package advice 17May 19, 2010 12:51 pm Hi Doriya, normal the only thing that can blow out is your site costs. It is impossible for the builder to know how much this will cost initally and they just have a cost allowance in the contract. Once the soil test has been completed then they will get a quote. Things that can blow out site costs are rock, an abnormal site classification for the area as this is a site by site basis, land fill isues ect. Has the soil test been done as yet. Most of the time this can be done prior to receiving the contract so i would check that out. Let me know if you have any questions and how you go with your sales consultant. I actually worked in sales for a new home builder for about 5 years. Apart from site costs there is also your selections so the builder would include all the standard specifications unless you have already opted to include upgrades which you have already sorted out. Upgrades on standard specs could range from $5000 upwards depending on your requirements and what you would like included. I have seen upgrades on specs go right up to $100k but these guys had a massive budget and wanted all the bells and whistles so all depends on the individual. Budde Design 3D Architecural Visualizations, Architectural Rendering, Artist Impressions, 2D & 3D floor plans http://www.buddedesign.com nathan@buddedesign.com Re: House and Land Package advice 18May 22, 2010 1:44 pm nathanbudde Hi Doriya, normal the only thing that can blow out is your site costs. It is impossible for the builder to know how much this will cost initally and they just have a cost allowance in the contract. Once the soil test has been completed then they will get a quote. Things that can blow out site costs are rock, an abnormal site classification for the area as this is a site by site basis, land fill isues ect. Has the soil test been done as yet. Most of the time this can be done prior to receiving the contract so i would check that out. Let me know if you have any questions and how you go with your sales consultant. I actually worked in sales for a new home builder for about 5 years. Apart from site costs there is also your selections so the builder would include all the standard specifications unless you have already opted to include upgrades which you have already sorted out. Upgrades on standard specs could range from $5000 upwards depending on your requirements and what you would like included. I have seen upgrades on specs go right up to $100k but these guys had a massive budget and wanted all the bells and whistles so all depends on the individual. Thanks for the advice guys. This is my situation at the moment. The contract has clauses which state I have to pay for removal of rocks, extended drainage, etc. However, the agent is willing to include in the "inclusions", a clause which states, "Fixed site costs". Now, what I'm wondering is, will this clause put into the "inclusions" cover all the other clauses?... If so, then essentially I'm getting a fixed site price correct? Or am I missing something? nathanbudde: I don't believe the soil tests have been done yet, but what has been claimed is that they will use a "H" class slab (which I'm told can be built on any soil, but I don't know if this is true). As I mentioned above, the "fixed site cost" component. Will this cover everything? Or will I need to be more specific? Should I include something like "Fixed site costs, inclusive of (but not exclusive to): rock removal, soil tests, temporary fencing, drainage pipes, connections, etc." Apart from that, thanks heaps for the advice guys. It's a big commitment from me, and thanks to you guys, I can get the information I require to move forward. Also, if only the site component is fixed, could I be looking at potential blowouts in the building costs?... Or is it possible to fix those as well? Re: House and Land Package advice 19May 23, 2010 2:34 am Bump/update. Met with the agent today. The HIA contract was not amended, but the building spec contract was. Is this sufficient? Or do I need the clause to be put into the HIA contract? Also, how can I tell whether a house and land package is TRULY fixed price?... Will there be certain conditions/clauses written in? Thanks. Re: House and Land Package advice 20May 23, 2010 12:12 pm doriya Bump/update. Met with the agent today. The HIA contract was not amended, but the building spec contract was. Is this sufficient? Or do I need the clause to be put into the HIA contract? Also, how can I tell whether a house and land package is TRULY fixed price?... Will there be certain conditions/clauses written in? Thanks. Hey just to clarify a couple of things class "H" slab cant be built on every site if the site classification is "H" or below than this is fine. Yes if its ammended in the specification contract than this is fine as it forms part of the contract. Get them to ammend the site costs section and include what you mentioned in there "Fixed site costs, inclusive of (but not exclusive to): rock removal, soil tests, temporary fencing, drainage pipes, connections, etc." Im not sure about putting the soil test part in there what are you meaning by this. That you will be paying on top of the contract price for the soil test or is this meaning if the classification is above class "H" then you will be paying for addition foundation requirements? be very careful how its worded. Everything else in your specification should be fixed price just go over them carefully to make sure everything is included this would be the most important part of the contract "your inclusions". Hope this helps. Budde Design 3D Architecural Visualizations, Architectural Rendering, Artist Impressions, 2D & 3D floor plans http://www.buddedesign.com nathan@buddedesign.com Very good points. Thanks so much ponzutwo for your advice. Appreciate it. 2 10409 Versaloc is a mortarless besser block system that still needs a properly engineered footing. If you just do a 400x200 footing it will fail in time. At 17m long you need it… 1 3443 Hi, This is my first post. We are planning to buy new home via House and Land (H&L) Package around Boxhill/Gables/Marsden Park in Syndey. Googled reviews for most of… 0 10516 |