Hi guys,
I need help with our current situation and would really appreciate if anyone can shed some light here as I think our Builder is taking advantage of our limited to no knowledge of the building process. Here’s our situation:
House and Land Package priced at $384,800 in Minto, NSW.
Feb 2, 2013 – Exchanged contract with the land only as my solicitor said she will only do the land part of the deal and the building contract/discussions will be between me and the builder only.
April 19,2013 – Land was released from Land Titles office.
April 24,2013 – Settlement of the Land.
April 29, 2013 – I have called the builder to inquire if everything is ready to go with the lodgement of the building plans. He advised me that everything should be ready by the end of this week to be lodged to Council. The “water report” (sorry I don’t know that this is called) and the BASIX report will be received this week so he said everything SHOULD be ready by the end of this week.
Now here’s my question, is this the normal process in building a house? While we were waiting for the title to be released, I met up with him a few times to ensure that everything will be ready before settlement, and as soon as the land is settled, off goes the plans to Council. I told him that I do not want us to be the caused of any delay because we are all aware that it will take a good 12 weeks before Council releases the go ahead signal to build. We are paying rent now PLUS the interest for the Land. I am well aware of the costs involved but the process is what really confuses me. I feel that our builder is all BS but I do not want to injure our relationship because he will be the one building our house. Please help us with any advise you can provide.
*Note: the price is now changed to $390,500 because of some variation I have requested to which I regret now. ($180,000 for the land, $204,800 for building + $5,700 variation to increase the ceiling height from 2.4m to 2.7m, additional aircon $1200 and Peirring cost $3000)
Jerry | Mortgage Station
http://mortgagestation.com.au/
Email Me | Phone MeFinance Strategist - Active Investor - Serving clients Australia-wide - Based in Sydney / Melbourne
Interesting, did you provide a liquidated damages clause in the contract?
Gant charts are good.
@mattsta – thanks for the reply. i will try to ring up other builders.
@hemi3000 – thanks for taking time to reply mate. i am not aware or have no knowledge about the liquidated damages clause. do you mind ellaborating a bit more? cheers!
Jerry | Mortgage Station
http://mortgagestation.com.au/
Email Me | Phone MeFinance Strategist - Active Investor - Serving clients Australia-wide - Based in Sydney / Melbourne
Jeremiah17 wrote:Basically if the house isn’t finished by x date he will be required to pay you a weekly sum as stated in your contract. Is it a hia contact?
I have not signed any building contract yet actually. The builder will be submitting the plans tomorrow though. He have provided me a pre-filled House Building Contract (BC4). The contract states the progress payment stages, the rates of the tradies but we have signed this contract yet. Some of the pages are still empty too.
Jerry | Mortgage Station
http://mortgagestation.com.au/
Email Me | Phone MeFinance Strategist - Active Investor - Serving clients Australia-wide - Based in Sydney / Melbourne
You must be logged in to reply to this topic. If you don't have an account, you can register here.
