Price change after contracts signed

Discussion in 'Introductions' started by Dave000, 17th Aug, 2017.

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  1. Dave000

    Dave000 New Member

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    Nsw
    After any help from any creditable builders.....

    We have signed a contract to build a modest 4 bedroom home over 4 months ago. The plans are in with council currently. We have just found out from the owner of the building company to say we were under quoted $43,000.
    How is this possible? It has had a few amendment that had gone through and passed by the assessors and all of a sudden they think we were under quoted!
    When we asked what the extra was for he could not give us a answer and said he's looking into it and will call us back. That was 4 days ago and have not heard anything and he will not answer his phone.
    If anyone can give advice on if the contract is worth anything or if it is a dodgy ploy to get more money out of us.
    Thanks.
     
  2. Marg4000

    Marg4000 Well-Known Member

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    Depends on the contract you have signed.

    One for a solicitor.
    Marg
     
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  3. Stoffo

    Stoffo Well-Known Member

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    If you were looking to get your lawn mowed or car serviced you would get more than one quote...

    Sounds like the builder wants out or better margin.

    So put it to another builder and see if it truly is worth more ?
     
  4. wylie

    wylie Moderator Staff Member

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    I'm with Marg... see a solicitor and fast. You've signed a contract so you need good legal advice on what you've signed and where you stand.
     
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  5. Sackie

    Sackie Well-Known Member

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    Not looking good with this builder.....Just the way he is communicating (or lack thereof) has big red flags to me.

    You need to see what type of contract you signed. Is it fixed? Do you have a PS that they are now saying will be more?

    You need a legal eye asap.
     
  6. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Rule No 1 of business is ensure you sell your product for the right price as you cant increase the price after selling it. The sole issue any building company should focus on is ensuring its contracts are correct. It may indicate a financial issue is looming too.
     
  7. Tom Rivera

    Tom Rivera Property Manager Business Member

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    Hey @Dave000, this is HIGHLY irregular and you should be very concerned. I'm not a solicitor but I am quite involved in the building industry and may be able to offer some sort of advice, you're welcome to PM or call me.
     
    Last edited: 21st Aug, 2017
  8. Harry De Elle

    Harry De Elle New Member

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    27th Aug, 2017
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    Location:
    Melbourne
    Hi Dave,
    I preface what am writing by saying that I have been a domestic builder in Melbourne for nearly 20 years, a structural engineer and currently studying law in Melbourne.

    Not being aware of the full fact set of your case, on first appearances, if the contract was a standard housing contract in accordance with the Building Act , not subject to rise and fall and not a cost plus contract it would appear that there is a binding contract between parties that is legally enforceable.

    The contract can be discharged by agreement if both parties agree to it. If the builder has indicated that he / she is unable to complete the project quoted and signed up for or is unwilling to complete the contract, then they is in breach of the contract. You therefore accept this breach as a repudiation of the contract and may wish to terminate and seek damages.

    I suggest that you thoroughly read the contract. It will outline the terms and conditions and the procedures to follow to bring about a dispute resolution and be prepared to get advice from a specialist construction contracts lawyer.

    Regards
    HDL
     
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