Another major builder in trouble - Metricon

Discussion in 'Development' started by Properwin, 18th May, 2022.

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  1. Simon Hampel

    Simon Hampel Founder Staff Member

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    Everyone need to be careful not to confuse Metricon with Metropole - not sure if it's autocorrect causing issues there.
     
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  2. The Y-man

    The Y-man Moderator Staff Member

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  3. Tufan Chakir

    Tufan Chakir Well-Known Member

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    Talking with a very good builder yesterday who costs accurately and works on fixed fee contracts - 25% increase in material costs since xmas
     
  4. Tufan Chakir

    Tufan Chakir Well-Known Member

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    More to follow, just waiting for the Metricon bail out I've heard
     
  5. MTR

    MTR Well-Known Member

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    Not surprising

    I decided to change my tile selection, looking at 30% increase if I change selection.
    My builder will be wearing this as its a fixed price.
     
  6. Gen-Y

    Gen-Y Well-Known Member

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    Poor builder.. I hope he doesn't go bust because you don't want to pay. :rolleyes:
    He must be straining under.. all the pricing have gone up almost 40% since 2020.
     
  7. MTR

    MTR Well-Known Member

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    I did not change tile selection

    I have a building contract I signed and there are a couple PS, however my build contract is fixed price. I cant change what is happening today, why insurance is important in current climate

    You are not not suggesting clients are at fault for rising build costs?
     
  8. Gen-Y

    Gen-Y Well-Known Member

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    Of course not. That is what a fix price contract is about. But it is how the fix price contract is worded that counts.
    We do fix price contract for a certain expiration date. Once it runs over, the clause state we go variable on material cost.

    I think going forward, any builder would be smart to revise their standard fix price contract with provision for material cost outside their control to be pass on to customer.
     
  9. MTR

    MTR Well-Known Member

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    Can I then add $60,000 for 12 months delay, and $60,000 for loss of rent? If builder causes delay I can not claw back money.

    Building has risk and why I went with my current builder.
     
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  10. Trainee

    Trainee Well-Known Member

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    Serious question, how does bank lending work for a consumer with a build contract that isn't fixed price?
     
  11. Gen-Y

    Gen-Y Well-Known Member

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    That is a good question Trainee.
    Hopefully I can find an answer myself.
     
  12. MTR

    MTR Well-Known Member

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    The bank will require the build contract and a schedule of progress claims at critical stages. You wont get a loan if you dont provide this. PS is not a new conception

    Bank only release money after completion of each stage and signed off. Once this has been confirmed money gets transferred to builder
     
  13. Brady

    Brady Well-Known Member

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    Sure you can if it's in the contract... but can't see any builder agreeing to it.

    Whereas unfortunately many sign building contracts without knowing the full details.
     
  14. sash

    sash Well-Known Member

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    Progress of my builds....

    1. Geelong 4x2x2 - nearly built. PCI within 2 weeks. Handover by the end of month give or take.
    2. Phillip Island Build - admin took 5 months. Site cut to start 13 June. I expect this will be done before the end of the year or early 2023 (end of Jan)
    3. Perth Build1 - roofing going up.... slower than Vic ones...but expect it to finish late this year or by Jan 2023. Started in Dec 2021.
    4. Perth Build 2 - doing colors/pre-start. Soils being done. I don't think this will be built before July next year. Okay with that.

    Contemplating whether to build in Ballarat....lets see.

    So not too bad if you know what you are doing.
     
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  15. MTR

    MTR Well-Known Member

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    I has one Melb builder in Melb pay for delays. It was in the contract. But rare
     
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  16. Brady

    Brady Well-Known Member

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    How long ago was that?
    Can't see any builder agreeing to those terms in the current climate with issues with both supply and labour
     
  17. MTR

    MTR Well-Known Member

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    2017
     
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  18. SatayKing

    SatayKing Well-Known Member

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    Extended Sabatical
  19. SatayKing

    SatayKing Well-Known Member

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    Dear, dear me. Never ceases to amaze me.

    "More than 300 investors around Australia and the world are likely to get less than 10 per cent of their money back after they tipped in between $50k and $5m."

    https://www.news.com.au/finance/bus...r/news-story/7e5cc0d31abb57fab8ab91499ee158d1
     
  20. SatayKing

    SatayKing Well-Known Member

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    Another builder in Victoria, Langford Jones Homes, has gone into liquidation. Owes around $10m to creditors.

    Very sad for those impacted by this.