Variation of contract - excessive costs???

Hi all,

I am in the process of doing a regut and upstairs extension for a terrace in inner west Sydney. Please bear with me as I need to detail what has happened so far and ask for your opinion on whether the charges requested by the builder are excessive or not.

During the demolition stage, it is found that the property has about 75 sqm of asbestos. The builder's subcontract quoted $9700 for this + 20% builder's margin. They also proceed to do the work without my consent. To provide a point of reference, I have in the past remove 120 sqm from a fibro home for $6000 (in western Sydney though).

Also during the demolition stage, they found that the house has a double roof. They quote $3700 + 20% builder's margin. This second roof only consists of some timber frame and sheet.

We are now at the foundation stage, the builder wants to change from timber bearers & joints to concrete raft slab. Cost is unknown at this stage but he mentioned with the change, we will need to remove more spoil, which comes at $650 + machine cost + 20% margin. From my research, $650 is very high per truck.

I am interested in your opinion, especially those with experience renovating in the inner west. Am I being ripped off or this is to be expected?

Thank you all.

 

• Variations - read your contract about commencing varied works without approval.
• Cost of asbestos removal - what was the scope of works, bonded or loose fill? How long did it take for how many labourers? Has contractor provided evidence of the costs incurred? Was the asbestos contractor already onsite doing other works?
• Why do you need to change to a slab? It is the builder's suggestion Save yourself the $. Why is there substantially more excavation - slab on ground will require fill not excavating (other than the thickened edge)
• What is a double roof? What was it comprised of? Why wasn't it discovered when they were quoting the work? Their problem. Tell them to get another quote.
• Costs will be higher if there is more manhandling of materials due to poor access, tight site etc

 

It wouldn't surprise me that doing anything with terraces in the inner city is more expensive simply due to restricted access which may require more hand/wheelbarrow work and/or specialised machinary for tight maneuvering.

 

Hi Scott,

The subcontractor doing the demolition also did the work on the asbestos, the asbestos was only bonded ones. Originally, once the builder found that the subcontractor went forward doing the removal without consent, he offered to not pay for that job. As a gesture of goodwill and to be fair, I paid for half of the $9700 as I think that is a fair amount.

The builder wants to change to a slab as the original engineer plan would risk subsidence on the neighbours' properties (the neighbouring terraces are side by side and I share a common wall).

 

Surely the engineering plan has taken subsidence into account? Ask the engineer about this.

I assume that your builder isn’t an engineer?

 

Doubtful that there would be less risk with a slab on ground vs engaged & isolated piers.

 

We spoke yesterday and the reason for subsidence is because putting in piers requires deeper excavation. It made sense to put a slab on as this does not require further excavation. Tbh, I prefer the slab anyway as the property is attached to neighbouring ones and may have damp issues in the future due to lack of ventilation. The quote comes back to $2000 extra for the slab. I think it is reasonable.

 

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They don't require continuous excavation unlike a strip footing or edge beam. St most, you're looking at 500-600mm vs 450-600mm for thickened edges which would be against the existing walls/footing