Hi All
I have bought a block of land in WA with the intention of building a IP.
The problem relates to the contract or more specifically a variation that has been issued since we signed.
Basically In February of last year, we agreed to buy land and also build a house on it in Tapping WA. We were told that the land should settle in approx 3-4 months so we signed on for the building also.
To cut a long story short, the land did not end up settling until January of this year !!! In the meantime however, our building contract stated that the builders are allowed to issue a price increase should the construction not be complete in 6 months.
No great surprise but our builder has issue a $20,000 variation to the contract. Given our contractwas for a $120,000 house this is a substantial increase. One which we arent too happy to be paying as we did not agree to this when we signed. In fact i it wasn't for our constant emails/phone calls we do not believe the land would have settled for months yet. Who knows how much they could have increased prices by this point.
This is where I need your help. The builder is arguing that it is not their fault the land didn't issue in time and are entitled to raise the price. My arguement is that the two companys (the land developer an the builder) are one and the same (owned by the same parent and conducting business together) and therefore should have been aware that the land would take so long to settle.
I have been advised by the Building Disputes Tribuna to 'sign the variation under protest' and lodge a complaint with them.
What are your opinions out there. It seems to me that the builder would have been or should have reasonably been aware of how long the land would take to settle and therefore should not have the option of rasing the price. Basically they knew that the lnd wouldnt be ready and therefore could bump there price after the 6 months were up.
We signed 'under protest' but now want to take this further. We do not feel it right as we signed in good faith and now through no fault of our own they increase our price by approx 20%
Any help is apprecied.
Hi there
I think you are going to have to have someone (your solicitor) review your contract – it sounds like you went ahead based upon a 'representation' as to timing that perhaps became part of your contract? – you need to review what representations have been referred to and agreed in writing – as representations can amount to damages further down the track
my experience with builders is that they invariably run late – and the contract is drafted in such a way – provided they give appropriate notice under the contract – that they can increase their costs
just remember – if all else fails – you can recover your costs by claiming the building costs as depreciation of your IP further down the track (unlike an owner/occupier)
thanksSure
My problem lies in that the representations were verbals from the salespeople. I dont think we have anything in writing that said when the settlement would occur.
Any solictors online who can tell me if I have a leg ot stand on ?
Hi there
I think you will have problems if there is nothing in writing – as your contract will normally say something like – any representations which form part of this contract have to be reduced to writing and agreed between the parties…
You can still complain though – cause sometimes people will still negotiate with you to keep you happy.
thanksHi there
Have you tried contacting consumer affairs as they might be able to help you out they helped us out when building in Victoria. They may be able to find some conflict of interest.
I understand that you listen to salesman and they always say it will be right but as someone once told me "If it isn't written down it is not true"
Hopefully you have some success
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