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Building contract loopholes
Topic Started: 31 Jul 2017, 10:50 PM (398 Views)
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Hi All

I final settled on my land this week and now its tie to build .
I have a copy of the contract but have found so many loopholes .
By loopholes I mean . on the inclusion list it states that they going to install a split system ... and in the same contract further down in a another paragraph it says up to builders discretion , not only that the system by what I can tell is too small 1.1kw for around 40m2.... no way that's going to cool on 40 degree day
penalty rates and damages if I am late with a payment slugged 14% but if the builder is late its only 250 a week....
Just wondering I someone could give me some advise who could
have a read of it and find all the loopholes for me?

thanks for help Mario
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herbie
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rodder7
31 Jul 2017, 10:50 PM
penalty rates and damages if I am late with a payment slugged 14% but if the builder is late its only 250 a week....
And if there was a single drop of rain fell out of the sky anywhere in the region in one of those weeks your builder very well may be late Mario (or any of a whole host of other potentially 'unfortunate' happenstances came to pass), you're not going to get your paltry $250 pw either - But those are possibly the least of your worries - As in just hope he doesn't hit any bad nasty hard arsed rock or any other major inconveniences when digging the footings for the place mate; Oh, or go bankrupt anywhere along the line ... :)

There's reasons most people buy established properties mate (both as investment properties or homes); Rather than opt to get new ones built (With the sorts of issues you've raised being one such general type reason) - But good luck with it anyway.

But hey, the good news is that it's not always a total screw up. And sometimes it just might hurt only a little bit more than what you thought you'd signed up for rather than a whole lot more.
Edited by herbie, 1 Aug 2017, 06:08 PM.
A Professional Demographer to an amateur demographer: "negative natural increase will never outweigh the positive net migration"
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Rufus
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rodder7
31 Jul 2017, 10:50 PM
Hi All

I final settled on my land this week and now its tie to build .
I have a copy of the contract but have found so many loopholes .
By loopholes I mean . on the inclusion list it states that they going to install a split system ... and in the same contract further down in a another paragraph it says up to builders discretion , not only that the system by what I can tell is too small 1.1kw for around 40m2.... no way that's going to cool on 40 degree day
penalty rates and damages if I am late with a payment slugged 14% but if the builder is late its only 250 a week....
Just wondering I someone could give me some advise who could
have a read of it and find all the loopholes for me?

thanks for help Mario
Items like A/C units, ovens, hotplates etc are prime cost items. You need to sit down with the builder and specify exactly what you want. If you want high spec you will have to pay more.

As for the interest charged on your payments, that is calculated on the overdue payment at 14% per annum but charged only for the days overdue.
EG if you make a $35,000 payment 7 days late that will cost you $94 so it's not a huge cost. In any case the builder will give you maybe 10 days to make the payment. They rarely charge interest, but will if you are way too slow. Mostly your bank will make the payments if you are getting finance, and they will be on time.

Building a house is a very exciting time, but it can be stressful. Try to be on site as often as possible, but don't get in the way. The contractors will ask you small thngs like where do you want the light switches, power points etc. If you are not on site they will make those decisions for you.

I hope it goes well for you.
Take risks - if you win you will become wealthy, if you lose you will become wise
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herbie
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Rufus
1 Aug 2017, 08:12 PM
Building a house is a very exciting time, but it can be stressful.
Ya remains a master of understatement Rufus - In relation ta some things at least (IMO) ... :)
Edited by herbie, 1 Aug 2017, 08:22 PM.
A Professional Demographer to an amateur demographer: "negative natural increase will never outweigh the positive net migration"
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