Time for claiming extra cost

I have settled on a new build since September 2017 and the builder has dropped a bombshell seeking $5k for extras he claimed to have put in. It has been quite a long time and during the build there were variations due to cutting back some specifications to fit in some unforseen work. There were work not completed by the builder which he is claiming as outside his standard scope of work. There were pluses and minuses, the big minus is especially due to delay in completion. Overall I would consider that the extras would be offset by the reduction of scope of work and the work I had to put in to finish his scope of work. An example of the latter is purchasing the installation of NBN even though it was specified as scope of the builder.

My question is firstly should I meet with the builder at all to go through his costing of variations although the build contract is fixed price and the extras and offsets I made were given to him along the way? Would the meeting itself be considered an admission of extras to be settled? What would be the strategy to go about this? Should I see a lawyer if the builder were to go to MBA Queensland to adjudicate? Should I go all the way to QCAT?

Any advice would be appreciated.

 

Legal advice should be sought!

On what basis is he claiming extra costs?

 

Ring qbcc
builders are scared of qbcc because they can put there license on hold so they can’t trade if issues arnt sorted
Print out all ur txt messages and emails for proof it’s about to get messy

 

Has the builder followed the CONTRACT not the specification & plans? The precedence of documents is 1. Contract 2. Specification 3. Plans.

Have the variations been notified in accordance with the contract? (strict time frames apply depending upon the form of contract used).

Does the contract comply with the form accepted by fair trading?

As per @Terry_w - seek legal advice.

 

The builder is claiming cost on a number of areas. Two examples are:

1) the landscape design has been changed. But at the time of the redesign emphasis was made that there should be 'no surprises', that it has to fit his budget, and it was put in writing to the builder that there will be no extra unless agreed. The redesign changes involved not having external tiled/paved and decking, but putting in a low retaining wall and exposed concrete pathways. The big water structure is required in the contract and original drawing but the actual design of it was not. The redesign was on the basis of rendered retaining walls should be offset by not having paving/tiling.

2) the feature wall in the master ensuite involved French tiling with travertine. It involves travertine tiles of various square and rectangle sizes to be assembled according to one of two configurations provided by the supplier. The builder claims that feature wall does not normally require French tiling and that the tiler is charging him on an hourly basis instead.

My contract with the builder is a fixed price contract with the stipulation in the specification that the builder will absorb the extra in costs as much as possible where more expensive options are chosen.

 

I phoned QBCC and it said that they cannot help on the matter. I think they basically take on matters that look at the extent of work that must be completed or unsatisfactorily done by the builder, not the amount to be settled.

They referred me to the Queensland Law Society which in turn referred me to the Queensland Building and Construction Commission. All said they cannot offer advice, not even information on rights! I am awaiting response from the Lawpath website to try and get in touch with a solicitor to discuss options.

 

I meant under what legal principal - a clause in the contract? Or just on a whim?

 

@Francesco as I said before:

How has the builder complied with the clauses in the contract pertaining to variations? 1) Notification 2) Timing 3) Pricing 4) Client Agreement (verbal or written)

 

Thanks for advice @Scott No Mates, @Terry_w and @gerege.

I am not sure to what extent builder is following Contract separate from my specifications as the Contract specifies that the builder builds according to my attached specifications and plans. The contract is based on the forms set by the Queensland MBA. Is there a time limit for the contract variations?

Hi SNM

The builder has not given any formal notices. He is just unhappy about cost overruns and mentioned MBA, QBCC along the way. Probably he was waiting for all his costs to be known and sizing up the situation whether to claim for more.

 

The builder did not adhere to most of these clauses but we have practically cooperated in a spirit of 'give and take' to complete the building. I am inclined to appease if the builder would compromise on the amount.

I have been advised by a lawyer to draw up a deed of settlement to finalise securely. Is there a standard proforma available on the web that I can base on?

 

Thats the role of a lawyer to draft it and see it executed by both parties. They NEVER advise YOU to draft the deed.... Whats a pro-forma deed of settlement ? A blank piece of paper ?

 

I note that the Federal Court has provided an example of a deed of settlement for employer and employee to execute and it is available to the public.

 

Well that wont help a builder and client issue. And state law. Consumer law? Etc And without drafting and advice how would you know what you missed and later enforce it... law is a profession. Not a hobby.

 

@Francesco just wondering what agreement you came to with the builder in the end?

Thanks

 

What happened is that I documented oral agreements during negotiations on my building specifications and agreed to all builder's variations identified during clarifications. These were incorporated into the MBA's proforma contract as a fixed price contract with my wordings to owner's specifications, clarifications and choice while allowing any progress variations to the specifications during building.

During the construction progress I documented all variations based on item pricing of the builder. In quite a complicated build of a PPOR with upgrades and corrections consistent with builder's timetable and builder delay of about 1 month, my estimate was that the variation would be nil at completion.

Builder wanted more but apparently could not be fully convinced over his side, including MBA counsel, to make it worthwhile to pursue the demand diligently.

In summary, no variations paid either way at completion and there was no need for any deed of settlement.

 

Must be a really nice PPOR

 

Rather proud of the feat but will not want to attempt any repeat! It was about $1800/sq m but my estimate by an number of means saved me $40-80k on an equivalent building.

 

Well done.

Yeah most mums and dads I know who renovated or built their home swear they'll never do it again.

 

The one (important) thing that I learned many years ago "Building is easy, people make it difficult".

The design, procurement, construction, supervision, co-ordination, contract management etc are the easy bits - managing the client & other parties is where the real challenges lie.

 

That's the problem. Most ppl don't deal with this on a regular basis, so their expectations/understanding of the entire process can often be very different to the reality. However you also have the rotten builder at times, which exacerbates any issues.

Building for anyone, regardless of who they are is often challenging. So it goes without saying, even more so for mums and dads first time.