Hi Everyone,
I’m just after a bit of advice – we are building a home through a large building company. We decided to use the tiling package they had on offer to tile the entire living area of the house. We ended up choosing larger tiles than the allowance covered and were told it may cost a bit extra to lay the tiles etc….
At pre-start, the lady informed us of the extra costs and we were fine with that. Since then we have signed the contract and slab is just about to be laid. 2 days ago we received a phone call from the builder to say we owe $3,500 extra for the tiles. (obviously this was overlooked by all of us and the builder now realises they haven’t accounted for this cost in the contract)
Had this fee been included in our contract price, we would have been able to adjust finance accordingly, however now that finance has been completed we can’t get our hands on $3,500 other than to take out a brand new loan.
Does anyone know where we stand with this problem?
Thanks guys,
BonnieHi, I am very new to this but surely the contract stands? (Normal contract law)
However if there was an oversight (you expected to pay more,but was it $3,500), negotiate.”Fair middle ground” may be a good place to start and might very well be cheaper than lawyers.
Cheers JamesO.K. are the different tiles noted in the contract, but not in the pricing on the contract? If this is the case they have no option but to give you those tiles at the standard charge. Basically the contract should be a fixed price contract and they can only change it as per your variations AFTER commencement. If you entered into the contract at that price with those inclusions that unfortunately for them is their mistake and now their cost. If they refuse take your contract to both the Master Builders and HIA associations and ask them for a ruling. They will ensure the builder complies as they are the two major industry bodies.
If they are not noted in the contract for that price though, I would speak with the builder, and the Salesperson, explain your position and ask them to go thirds. This will give you the opportunity to only pay around the $1200.00 mark which you should be able to come up with by the end of building right? If they refuse to work with you explain to them that your bank will not re-approve you for more funds and you will void the contract if they don’t. (This is an awesome Bluff.) Also explain to them you didn’t make the mistake and as such as you now have to beg, borrow and steal to fix it you feel it’s fair to cover some of the costs, just not all.
If neither of those appeal to you then sue the Builder for Breach of contract. (Problem is, this will take a long, long time!!)
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055Hi Stuart and James,
Thanks alot for your replies and advice.
Stuart – to answer your question yes the tiles are noted in the contract, hence the reason we can’t understand how/why the builder can now ask us for more money. We are waiting to hear back from the general manager today so will know more once we have spoken to them. The worst part is, we are building 2 homes through this particular builder at the moment so it will certainly leave a bad taste in our mouths if they don’t come to the party and we have to take this matter further as we’ll probably never build through them again.
Will let you know the outcome.
Cheers,
BonnieBonnie if you are building two homes through them I would suggest you use that as leverage to get the tiles which are noted in your contrct at no extra price at exactly that.
Remind them the contract is binding, and you wouldn’t want to not use them next time…
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055Hi Bonnie
What an awful situation. Under contract law, once there is a commercial contract with certain terms, consideration such as a deposit paid, signed by both parties who intend it to be binding then, subject to any small print (check the small print – although if deemed unreasonable it may not be binding) the contract will be binding.
That means you only need pay what you have agreed. If they want more then they have to YOU for the balance – but if all the above applied then it would be hard for them to do that.
If I was you I would state your position clearly in a letter and keep a copy of it. Take the letter to them and be as polite, but assertive and expain that you hope such a small matter will not affect your ongoing working relationship – especially as you will be using them for many more jobs – and referring them to many other people[biggrin] Hopefully that will be the end of it. If not then report them to Fair Trading and the professional builders association or whatever it’s called. Hopefully no lawyer would be necessary but if in the worst scenario that becomes the case then get one of those free 1/2 hour advice sessions and then negotiate a reasonable set fee – phone your State’s Law Institute to get names of firms who do free half hour.
Good Luck!!
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