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Building house - is going to go over finish time stated in contract

Discussion in 'Development' started by B-Man, 24th Jun, 2015.

  1. B-Man

    B-Man Well-Known Member

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    in short the build hasnt even started but based on the time they have allowed for council approval and building im already a month behind.

    i understand that theres a possibility that it can go over but i always thought more to bad weather etc.
    is this acceptable?

    apparently there were some holdups but tbh maybe a week if that and alot were cause by the builders themselves having to get the drawn plans changed because they gave incorrect information and in general not following up with emails for a few days. i reply within half a day if seems urgent otherwise within 1 day if not.

    do i just have to suck it?
    its costing me money holding loans with nothing happening and if its already a month out it may end up 2 months by the time the build is done!
    will also put my current house sale too close to christmas so possibly have to hold that for longer too
     
  2. Perp

    Perp Well-Known Member

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    Has the earth actually been broken? It's usually pretty standard for the clock to only start ticking from that point, and for approval and paperwork delays up to that point to be the homeowner's problem.
     
  3. beachgurl

    beachgurl Well-Known Member

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    Are you building with a project builder? The longest part of the building process is the paperwork. For each of the times I've built I'm sick of the build before the temporary fencing goes up. On the positive, the build itself is the easy, less-stress part.
     
  4. wombat777

    wombat777 Well-Known Member Premium Member

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    For my PPOR the clock didn't start until 20 days after the construction certificate was issued ( this was from the standard NSW HIA residential contract ). Check your contract.

    What construction period is stipulated in your contract? For my 34sq PPOR it was 24 weeks.
     
  5. HD_ACE

    HD_ACE Game-Changer Premium Member

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    You should have in the contract:
    Time (no of days) to get to site and
    Time (no of days) to completion from a certain point is site handover, building permit, slab down.
    Also you could have put a reasonable penalty clause in there for breach of contract just like their 20% interest on late payments.

    The paperwork side of things is bad, ground can be made up during the build if the orginisation is there.

    Not worth stressing over this early on in the process, Something worse will pop up :D
     
  6. B-Man

    B-Man Well-Known Member

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    only have a start and finish date in contact
    start date was basically 2 weeks ago and waiting for council is apparently 2 weeks.


    Great just what i wanted to hear! haha
    i was just wondering if it was normal as i was told it would probably be finished before that date.
     
  7. HD_ACE

    HD_ACE Game-Changer Premium Member

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    what are you building and how many days have been allowed? and how many for wet weather etc
     
  8. Bargain Hunter

    Bargain Hunter Well-Known Member

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    Do you have liquidated damages in the contract?

    If so and the builder does not complete within a given period (subject to valid extensions of time) then you would be entitled to make a claim for each day that practical completion was delayed.
     
  9. Perp

    Perp Well-Known Member

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    Hmmm... that sounds unusual. Is this an established / large builder? What triggered the "start" date?
     
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  10. B-Man

    B-Man Well-Known Member

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    building my PPOR
    126 days from start to finish

    no liquidated damages in contract unless its standard.
    first house build and no one really to guide me so no clue what im doing

    yes,
    start date was date written in contract
     
  11. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Very interesting. Most standard building contracts are written in the HEAVY favour of the Builder with defined terms rather than dates. For example it will say '20 working days to commence build' and that is then defined from when Council has approved building license and all services are available on the block.
     
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  12. Perp

    Perp Well-Known Member

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    Liquidated damages are pretty standard, but it's also pretty standard not to specify a particular stating date, so nothing about this sounds standard! I'm guessing you unfortunately didn't get precontractual legal advice. It may be time to get some, and figure out exactly what it is you've signed up for. :oops:
     
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  13. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    All projects cost more and take longer. Are your expectations accurate? Most contracts favour the builder and LD clauses fairly useless. Take bad weather as an excuse. Or.....

    Most tax new devs get time, cost, taxes and strategy wrong through inexperience or failing to get good advice. Yes it costs money to save money. One of my work colleagues project managed his owner build home. All was good except one tradie who had to certify plumbing. Five weeks delay and no options..he saved 1k over next quote. Saved 50% on sink to delay trades three days for kitchen install and tiler. Extra cost 1200 to save 240. He blew his contingency budget on concrete he under estimated for labour and extra formwork.
     
    Last edited: 24th Jun, 2015
  14. Be Developer

    Be Developer Property Developer Business Member

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    @B-Man

    Seems like it is project home builder contract.

    If you read contract carefully, most likely it will say (along this line)

    Start date will be 7/14 days once cc/building permits are issued.

    As others mentioned, start date isn't the date you signed the contract.
     
  15. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    If you want some non expert advice on the contract. Take a scan, edit out your identifying particulars and post it up on here and we can advise more accurately.
     
  16. Pistonbroke

    Pistonbroke Well-Known Member

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    Are you fishing for a better (looser) contract WM? ;)
     
  17. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Lol :) I like adding special clauses to the HIA contract to cover myself better.
     
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  18. B-Man

    B-Man Well-Known Member

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    understand this start date was 2 months after the contract was signed
    heres the Building Contract with all personal info deleted
     
  19. Perp

    Perp Well-Known Member

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    Yep, 11.3.14 gives them a right to postpone the finish date due to "any delay of the local authority".
     
  20. Be Developer

    Be Developer Property Developer Business Member

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    @prep thanks for quoting exact condition

    i am close to memorising MBA and HIA contracts. :rolleyes: