Nov 07, 2017 6:33 pm
About to start at the beginning of the long toad that is home building. Just wondering, has any one been able to successfully negotiate contract terms with builders prior to signing a contract, or am I dreaming thinking this can be done ?
Things I’d potentially want to change in the contract include: making payments at each stage of the build subject to an independent building inspection and rectification of faults, removing or extending sunset clauses, altering the % of payments to be released at each stage of the build and some other things to potentially reduce risk.
At this stage likely to be going with Carlisle for the build
Re: Negotiating with builders before contract signature2
Nov 07, 2017 7:51 pm
This is a question that seems to get asked a lot with various variations.
Most builders base their standard price on you accepting the standard HIA or Master Builders Contract so they are likely to be reluctant to change or want more money.
There is nothing in the standard contracts to stop you having an inspection after every stage. If there are substantial faults you would have grounds for disputing that the stage is actually complete. For smaller defects its probably worth asking for a timetable of repairs and if this continues to be an issue then deduct a percentage rather than refuse to pay.
You may also find the information at this link interesting: http://anewhouse.com.au/2017/10/do-you-need-a-lawyer/
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Re: Negotiating with builders before contract signature3
Nov 08, 2017 4:24 pm
All I'd suggest is that you put anything - ANYTHING - you agree on - in writing. Your builder may be your best mate - a perfect gentleman - almost a saint - BUT - get it on paper.
AND - keep it filed and available.
Re: Negotiating with builders before contract signature4
Nov 11, 2017 9:04 am
To all those who think industry building contracts are fair and fairly even-handed are deluded. They are not and favour the builder. In addition to that builders stack the deck with special conditions, create urgency with promotions and large project builders use their market power to stack the deck. Because of their market power, many will not negotiate terms so its basically take it or leave it or if you don't sign today you will lose the promotion. Many know site conditions on estates and will stack the deck in provisional sums. Who is the loser?
You have the choice of going in blind or have a good building consultant look after you, at pre-contract and stage inspections.
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
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