Builder Increasing the cost post approval

We are building a granny flat and after design and approval, builder has increased the cost without prior discussing about it. The items included Thicker concrete slab , concrete drop edge beam & Internal sewer line peg-out & additional piers totalling $9000. This was never communicated to us earlier while initial costing and site survey several times by builder. The increase has been quoted all of sudden. Though there are some other changes but these were discussed and approved. This makes us suspicious and we want to know if anybody had experienced the same and can we change the builder? Also if can save the design and approval cost with the new builder? since this is a;ready done using a private certification.

 

Who owns the plans?

 

We have paid for the design and approval and assume own the plans as well.

 

Did you engage a designer or did the builder prepare/engage a designer? Yes you paid but that doesn't decide ownership.

 

Builder's designer prepared the design..

 

Well, you don't own the design. You will probably need to pay the designer for the right to use those plans.

 

Yes, negotiate with the designer to use the design once off for the site. It is better to pay $500 to $1500 than to start all over again. Then use the design to get one or two quotes.

 

Thanks Scott. I checked the initial contract and it list the fees required to pay if choosing another builder and releasing the plan.
Also I am suspicious of builder that they have never informed till now or get approval to add the items like Thicker concrete slab etc. I can see some manipulation in their revised costing where they have reduced the price quoted during the design phase of some of the things and added new items. We have already locked the design based on their estimate and our budget and now I see they have added extra items. I don't think this is a normal process?

 

Everything above the slab is easy to price/make allowances eg bricks above slab, windows, plasterboard, roof tiles or tiles/carpet where $/m² allowances are made.

The slab can be designed in many ways with different construction methods and costs.

 

See Fair Trading. Variations for design mods are one thing but to suddenly find new mandatory costs may be covered by consumer law if the contract is defective. Fair Trading regulate builders contracts and licensing.

 

Thanks Paul, I will go through with Fair trading regulation and post if found something relevant to the current situation.

 

Couldn’t have gone for a master builders fixed price contract?
Proberly a bit late now but wouldn’t bearers and joist be a lot cheaper?

 

Pretty standard practice. However, they should have communicated better. Builders do not know the cost until the soil report and contour survey is done. Then a slab design is done. Fixed price should be provided, at contract.

I don't think fair trading will help and it will annoy your builder.... Talk to your builder, smooth it over.

Fact is the cost has to come from somewhere, as it is your house do you expect them to cover the costs?

As someone in the industry...

When we do our estimates we see how much cut and fill is needed. If there is a lot of fill we make an educated guess as to how many piers are required. But it is a guess until the soil and contour are done. Salespeople can sometimes be cowboys and are there to sell not to inform. That's why it is better to speak to a builder or estimator. Tell our clients we suspect a H1 slab is required and put it in the quote, if not required it is credited back.

I stress all builders are not that information which is why some builders have a bad name.

Count how many piers there are. Seems like they have allowed for an M class slab and you need a H1 or P. Also look at the soil report for depth to founding material.

You should be paying around $100-$130 p/lm for piers and $26-33 p/m² to upgrade from M to P class slab. Consider less cut and fill, drop edge beams and also consider a split level home. Drop edge beams / 200 series retaining can be anywhere between 200 - 550 p/m².

Bearers and joists are typically cost prohibitive and many builders will make you pay through the nose for them.

Send me the engineering and plans and I can offer advice.

Also if a developer sells you a dodgy block without proper compaction it could cost 20 - 30k more than the contracted price. If that is the case, perhaps you could get a refund on the block. But 10k in site costs is not abnormal.

Make your builder itemise all the costs. Increasing the costs post approval is fine, however, post contract you might have some ammo against them.

 

Who is the Granny Flat builder?