Inflation sucks and for building a property you will get mucked

They can do what they want with those contracts. Not worth the paper they’re written on and always favour the builder.
The options are renegotiate or cancel. If you cancel you pay more anyway due to all the price increases.

 

If it's a PS, then it's only an allowance which will be adjusted when the actual costs come in, ie ask for copy of the invoices

(FINAL_March2020) BC4 Contract_FLIPBOOK(s)

 

That reply was for OP not your similar issue.
It is certainly hard in this environment where costs are going up all the time and you now have a slab so changing builders would be nigh on impossible - that suggestion was for the OP as they haven't started building yet.

 

Thanks I totally agree generally the BC4 MBA Contracts are biased towards the builders (finding out the hard way). As you said it sounds weird for those items to be added as PC. I did call HBCF to confirm whether there has been any guidance on updating contracts because of builders going under, that doesn't seem to be the case. Unfortunately once a contract is signed with a builder there isn't much the owners can do about it. I am in Sydney, NSW FYI.

 

Those are great numbers in this environment it comes out to about $250k a pop. Are you going with a national or local builder ?

 

Thanks this is extremely useful. I can do that but I fear the invoices can be easily manipulated. My gripe is that I have signed a contract in May and I shouldn't sign a new one because of something that could've been planned for in May. The cost increases haven't happened overnight.

 

Local builder.

 

If the costs are included in the works, they'd be wearing it. If they're the PC sums they're adjusted. If they're PS they too get adjusted however it's similar to a real estate agent underquoting the price range - the actual costs will be greater than the allowances and it's up to the purchaser to determine the sufficiently of the allowances. It's a hook to get you signed up. Proving misrepresentation is going to be difficult and costly.

 

So are they currently in your contract as PC items or your builder wants to add them as PC items?

 

No they aren't listed as PC items currently only (1) Internal doors (2) Bathroom items (3) Kitchen bench-top/slabs are listed as PC items. Adding of timber, steel and bricks sounds ridiculous and crazy. I do understand prices are going up and no one has a crystal ball to predict these. But to add building materials to PC items is crazy talk they might as well start adding glue and screws to the PC items now. Unfortunately I don't know how much extra costs the new contract will add but I can keep you posted if you like ? Thanks

 

I’d be asking to see the quotes they’re basing the PC items on to make sure their estimates are based on something substantial and not plucking numbers out of thin air like my builder.

 

Mind you if the builder has signed the contract I’d be telling him to stick his PCs up his ***.

 

Respectfully of course

 

You can’t consider anything built for 265k high spec. I’m surprised you even get a roof for that price. Expect plenty of corners cut.

 

What eva..... that is what eveyone sayz. I don't pay attention...have done many of these... now... and happy with things.

 

Not that it helps but man you couldn't pay me to build right now. In fact, maybe ever.

Cosmetic renos are hard enough.

Contract or no contract, building just sounds like too much risk, hard work and cowboys calling the shots (with your cash). Not to mention, some even go under whilst you're knee deep in the middle of a build.

 

Hi Sash, what are the things you do that ensure you get a good fixed price build contract? Ie, size/type of builder, contract type, tips on how you negotiate on price, any other tips you have? And where do others go wrong?

 

Well from my perspective the following applies:

1. Make sure the inclusion list is comprehensive and to a good standard. If you have to add that at selections phase that is where pricing goes through the roof.
2. Site costs needs to be fixed from the start.
3. I prefer building houses on newly developedcland.
4. Make sure the builder has solid control of the supply chain .
5. When you negotiate price think getting a allowance for extras. Builders don't like cutting price

 

sash are you essentially funding the buying and building of single family homes using the big guys to construct and selling once complete?

 

No building and holding new but selling some of the older ones.