additional $8,500 - What should we do?

[Aulyna]

Just excited by starting of our new house few weeks ago, I was shocked today to get a letter from our builder, asking for additional $8,500. It’s titled as “Additional Personal Requirement -provide bushfire protection”.

Our block is in a new released suburb, next to an open land. In the Lease Conditions & Development Requirements, it clearly stated fire protection requirements. I believe the builder knew it clearly as they DO have a copy of the statement and they have build many houses in that area, and their staff know the statement much more than us. (in fact it’s not a person, it’s a company)

The building plan was submitted to the council by our builder and got approved in July; we signed the fixed price contract with the builder in Nov. The slab is just put on.

What will happen if we refuse to sign the additional $8,500? Will they stop building? Should we change to another builder? It will be a long process from design to approve…. What should we do?

Any advice will be highly appreciated.

Regards,

Aulyna

 

[BayView]

I would have thought that if it's "fixed" then that's it, unless the Contract mentions "varialtions" which are a nice little earner for builders.

I don't think this qualifies as a variation though.

I would ring the local Council first.

It sounds as though the builder either forgot to include the provision for the fire protection in his quote and is trying to sting you for this now, in which case that's his bad luck, or he is just trying it on for more cash.

The problem might be though, is that if it is the first scenario, he may use this issue as a way to get you to pay by threatening to not complete the project, or not add in the fire protection, unless the money is paid.

 

[casper007]

Did the building contract contain any mention of the firebreak provisions and were there any allowances via P.S. (Provisional Sums)? If it is a standard HIA or MBA contract ... under the building contracts act BCA ... the builder has to make best guess estimates when they set P.S. amounts and can only increase them by less than 10% of the original quote...

If as you say they have built there before ... they should have known and made allowances.

Often there is a cluause stating that there has been no allowance for such and such and should this be required, the builder reseves the right to pass on the costs to purchaser.

If it still looks confusing ... you can call the BRB (Builders Registration Board)
http://www.builders.wa.gov.au

That is the Perth office ... but they should be able to direct you to your State Board (assuming there is one).

Cheers

 

[Aulyna]

Thanks all

Thanks all for kind advices. Feel much better now.

I'll tried to contact HIA first then talk to the builder and keep you guys informed.

Have a good weekend,

Aulyna

 

[Brinkdude]

FYI

This is the same post under Legal Issues.

http://www.somersoft.com/forums/showthread.php?t=38765