builder increasing price on fixed HIA build contract

Hi we r building first home in WA standard HIA fixed price contract thru large project builder. Slab is laid construction underway.
We have a 5% price rise which is being charged due to clause 3a (attached) as there was a delay to start construction beyond 45 days. The delay is correct and is true theres been cost increases my question though is I never thought this could be charged after house started, but only before ?? ie. if we cant afford it we could then pull out.
We cant pull out now as land settled - house started - and we dont have the money for the variation. (we dont qualify for grant) Anyone know if the builder can legally charge this now at this stage ..? Thanks !

 

I've been hearing a lot of these but I don't know the answer on if it's possible to do it after slab is constructed - I agree that it's near on impossible to cancel contract at that stage

Here is an info sheet that was uploaded to the FB Group Shonky Builders WA that a lot of people have been sharing their stories on

The Building Commission may be the best place to start to get some advice

 

it is more likely the larger builders will sting you with this clause????

 

If the delay in commencement is correct, it's your baby.

The important dates are when the builder issued the quote, how long it took to accept the quote, whether the delay was due to gaining approvals (council/CDC).

You agree that there was a delay - what was the cause of the delay (the builder, you, approval)?

You have 10 days to accept the variation or to rescind?

You say works have commenced/slab poured - was commencement delayed or was the claim for the increase delayed?

 

Lucky its just 5%. Timber, concrete and steel have faced major price rises. Love the "fixed price contract". They usually arent. Its only fixed if all the conditions are met. Its about as dodgy as a travel agent flight credit.

Now re-read the whole contract and find where else they can impose cost increases. Builders are under cost pressure.

 

Thanks Scott yes delay to start was our fault as our bank (like most) slow atm so that held up things past the 45 days. Uncon approval was last year and building is underway as mentioned. Builder has only just now issued us the 5% variation. If we cant source the money I wonder what will happen ? Will the builder leave house half built and walk away ..? Thanks

 

I read the contract clause #2 and it offers choices. I'm sure they will be obliging if you accept it and may accept option D - (final progress claim)

 

You most likely will need to negotiate with the builder and your bank. Your bank may allow you to borrow extra and the builder may negotiate to reduce some of the bill and/or reduce some of the specification (ie remove air conditionaing, painting etc) to reduce the financial impact however some of those items may reduce the value of the house so might not be popular with the bank.

 

Thanks all for your replies

 

Just make sure that builder is not charging you 5% increase if you did not cause delays

just found out today from friends that 5% increase a builder was charging was scrubbed once a lawyer reviewed this

 

Many are try-ons. Some are clear.

eg Contract refers to delays in approval beyond 45 days and the delay is 60 days. Hard to see a builder demonstrate prices rose 5% in that 15 days. However a 12month delay in land being registered so it delayed submission of plans to council may be a land owner issue and they will face a cost plus variation. Read the contract.