Unfortunately this is not my only problem with ******, but i'll hold back for now....
When I first received the contract for our extension, I noticed ****** had allowed 235 days for completion, with agreed damages for late completion of $50 per week.
I rang ****** to discuss this, as the salesman had suggested our work (2nd storey, 2 bedrooms, rumpus and bathroom) would be completed much more quickly than the 235 days specified in the contract. I also thought $50 per week was hardly a big enough incentive to ensure on time completion of the project.
The contract administrator agreed to reduce the days to 180, but would not budge on the amount, saying that because we were staying in the house during the building work, that $50 per week was fair.
I was confident they would finish the work on time, so agreed to 180 days, and $50 per week.
Sure enough, ****** had terrible issues with the roof plumber, amongst other things, and didn't complete everything as stated in the contract until about 35 days after the agreed 180 days. This was raised at our final handover meeting, and the manager agreed to damages of $250, and said that ****** would re-issue the final invoice accordingly, and organise the final inspection.
I waited patiently, but never received the new invoice nor news of the inspection. After around 4 months, I finally received a demand for final payment threatening legal action. This is despite not having had the inspection, and the contract specifying that the builder is not to demand final payment until we've been issued a copy of the cerficate of final inspection.
I rang ****** to complain about the demand, and was told they were waiting to receive a glazing certificate (we'd organised our own windows), and termite report....neither of which I realised were being waited on. I organised the glazing certificate, but argued that there was never any suggestion that a termite certificate would be required. I even rang a number of termite companies to confirm. ****** agreed that they'd made a mistake on the termite certificate, as we're not in a termite declared area. They also said they could organise final inspection prior to receiving the glazing certificate.
So the inspector came out, and pinged me for having an unfenced spa...can't argue with that, and i've taken on the responsibility to have that fixed (the spa was there, as is, when we moved into the house 7 years ago btw). ****** now claim that they're within their rights to demand the final payment, even though we haven't been issued the final inspection certificate, because the only outstanding issue remains with me. BUT, they are now refusing to apply the $250 damages credit to my final invoice, because they claim i'm not entitled to damages because we remained in the property during building. They've said they NEVER pay damages for late completion to people who stay in the house while the extension is being built. This is despite their own contracts person initially telling me that the amount of $50 per week in damages was so low BECAUSE we were staying in the property.
It was after this argument that I spotted a note in the inner column of my contract entitled "Owner's Claim for Agreed Damages". It states this:
"The amount to be stated in Item 9 of Schedule 1 is negotiable and should accurately reflect the Owner's estimated expenses. If no amount is stated in Item 9 of Schedule 1, the amount of $250 per week is allowed to the Owner if the Owner vacates the premises during the Building Works or $130 per week if the Owner remains in occupation".
This appears to me that it's quite normal for a builder to pay damages for late completion even when the owner 'remains in occupation'. And i've done myself a disservice by agreeing to a measly $50 a week instead of the contract's suggested $130 per week.
Does anyone reading this believe i'm NOT entitled to the damages? ****** are threatening legal action if I don't pay the full final payment within 7 days. While i don't want an expensive legal battle over $250, i'm also pretty miffed at the way i've been treated. Might be time for a call to Consumer Affairs Vic?