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Part B All my comments were based on part B. If the risk associated to construction + cost (contingency) were explained to you, would you have gone ahead with the project. Developement can be a exciting thing providing you limit your risk profile. Mrs AL go easy on the man. You always...

I'm sorry to hear that BUT I would like to say! how any one can tell you that this was a low risk project is beond me. This has nothing to do with the market dropping. Its about the risk assoc with constrution. I can assure you that if your cotract read MAXIMUM LUMP SUM (ie price will not...

To me a contingency of 0.4%. The contract should have been amended so far as for the builder to take most of the risk, eg laten conditions, variations, delayed cost, etc etc. By doing that he would have come back with a tender price factoring in all his risks, which would have help you decide...

3. The land was purchased at a good price. 3 old houses on similar size blocks were sold without DA's in the following months for more tha we paid for a block with permits. Dwellings were built as cheaply as we could and replacement cost for the project would now be 20% more than Al's cost...

AL Was a contingency sum factored into the cost. Usually a 3.5% contingency is added onto the cost. (depending on the type of contract you sign) From what I'm reading this sounds like a high risk development (Reference made to no ground investigation & contract not being tight enough)...