How NCAT (NSW Tribunal) decides in this situation?

I signed up with a builder to build my house in Sydney. Signed agreement and paid $20k deposit.

6 months into preparing design/documents my relationship with builder turned sour as I was not happy with the variation costs he charged for the extra items I wanted in my house.

I broke the deal and asked for refund. Builder says he will refund only $10k

Builder sent me a breakdown of all the fees he has incurred in preparing documents. Till date all the cost incurred is towards:

- meetings held with office staff.
- design drafting fee
- office admin fee
- plus 20% builder margin.

Even though the admin fees are exaggerated I am okay to accept it. But 20% builder's margin is something I am thinking of disputing in Tribunal.

I believe builder should not make profit (i.e 20% margin) if customer hasn't benefited from his work.

Is this a valid argument to present in Tribunal?

 

He will win.

 

So you entered into a contract, didn't comply with the terms of the contract and now expect him to make no profit for his wasted time and your breach of contract?

 

wouldnt it depend if there was clause for the variation costs?

 

Welcome to the world of construction and civils. Often variations are where the profit is and their expertise and time is what you pay for - even if its behind the scene. The time involved with minor changes are often misunderstood and involve loads of time and effort. I have a mate who does devs who refuses flatly to sell OTP so he doesnt have to deal with endless requests to vary. His first dev was OTP and the buyers were told in contract that NO variations to specs were permitted. He was driven mad by all the buyers.

6 months into design ?..Thats a long time to not make a final specification.

 

What would a clause like that say? The builder isn't allowed to impose a margin on variations or a restriction on the margin? They then just add in a heap of internal costs associated with the variation and make money anyway.

Variations is where builders make the most money. Get the plans and specifications right before you appoint a builder and you will save yourself a lot of money and heartache.

 

No idea.
There must be a going market rate. Or whats generallly acceptable.

But obviously "i dont like the price" of extras isnt a valid exucse to pull out of the entire project

 

I think the offer of 10k back from the builder is generous.

 

I would grab the 10K before it’s too late! Going, going, gone! All spent on NCAT time.

 

NCAT is likely to find in builder's favour. I guess when you said you "broke the deal" you have repudiated the contract...builder has right to sue for damages.

"I believe builder should not make profit (i.e 20% margin) if customer hasn't benefited from his work." not what you think but what the contract says. contract is not drafted for nothing.