Don't Trust some builders

[HurtingFamily]

We bought a block of land based on a tender from a builder. After settlement they doubled the site costs and added 20K in additional costs blaming prior employee incompetence (who was sacked). It has left us unable to afford to build and paying rent and mortgage on a single income, struggling to get by supporting two young children. Heartless organisation that is characteristic of Wall Street not building homes for Aussie families.

 

[spludgey]

Caveat emptor.

I can understand your frustrations and don't want to point the finger solely at you, but unfortunately I think you have to at least shoulder part of the burden. Did you have the contract assessed by a solicitor? Did the solicitor advise you of any loopholes in the contracts that allow the builder to charge additional fees?
If something is not fixed price, it will always go over budget and take longer than originally planned.

 

[D.T.]

After settlement they doubled the site costs and added 20K in additional costs blaming prior employee incompetencey

So you didn't have a fixed price contract?

 

[engelo10]

WOW,

I am very sorry to hear this.

Its something similar I am very use to hearing after living in the US for the past 2 years.

There are many horror stories where foreign investors are getting screwed over by shady US operators when buying properties here.

Learn from the mistake and I believe that every experience is a good experience.

All the best.

 

[Ausprop]

ask for some vendor terms so you can at least get out of your rental

 

[Tools]

Have you had prices from other builders? What about a redesign and some value management to make the build cheaper?

Tools

 

[HurtingFamily]

fixed price

Hi,
Thank you for the reply.

The contract has a 150 day fixed price clause that was not honoured based on the argument of prior employee failure (who was sacked).

Thanks again for your reply.

 

[spludgey]

The contract has a 150 day fixed price clause that was not honoured based on the argument of prior employee failure (who was sacked).

Not your problem, go talk to legal aid!

 

[Mitch1]

Not your problem, go talk to legal aid!

What spludgey said....

Your contract is not with the sacked individual it was with the company whom this person was representing.
You had a 150 day fixed price in your contract, they cannot just decide that no longer applies because they have fired this guy. The onus is on them to train these people sufficiently to sell their product. It is not your issue.
Legal aid should be able to assist with this.

 

[tobe]

never proceed with a land contract without having a fixed price contract, that is also valued and finance approved from a lender.

The OP has only mentioned one of the risks if you buy land on its own.

 

[Angel]

I doubt Legal Aid will want to know you.

 

[westminster]

Hi,
Thank you for the reply.

The contract has a 150 day fixed price clause that was not honoured based on the argument of prior employee failure (who was sacked).

Thanks again for your reply.

I would fight this if I was you. You signed the contract in good faith and they have insurance to cover their own incompetance (one would think?!?!)

Take your HIA fixed price contract and read it thoroughly and work out how to fight this. Go sit outside the general managers/directors/owners office until they sort it out

 

[Chomp]

http://bpb.nsw.gov.au/

They should be able to help ?

 

[DavidMc]

I hate this excuse! A company is represented by people, profits from the positive actions of it's people and conversely must lose out from the negative actions.

I'd speak to your solicitor for sure.

 

[tobe]

I hate to burst anyones bubbles, but what got signed? I doubt a tender will hold up in court. Im just a bush lawyer, but tenders are just quotes, they will have fine print at the bottom saying they are just a quote and are subject to change.

always get both contracts to the bank and valuation and formal approval issued.


Banks dont use a tender when valuing or approving precisely for this reason. Its subject to change, whereas a building contract isnt.

 

[spludgey]

I hate to burst anyones bubbles, but what got signed? I doubt a tender will hold up in court. Im just a bush lawyer, but tenders are just quotes, they will have fine print at the bottom saying they are just a quote and are subject to change.

always get both contracts to the bank and valuation and formal approval issued.


Banks dont use a tender when valuing or approving precisely for this reason. Its subject to change, whereas a building contract isnt.

But you wouldn't be handing money over unless there was a building contract in place already, would you? I've never built myself, but that's what I'd be expecting.

Edit: Just re-read the thread. Probably no building contract in place yet, I guess you're right here.

 

[kero]

Try the ombudsman or the building commission in your state.