I have bought a block of land through a buyers agent with the intention to build a duplex.
Got in a contract with a builder (through same agent).
Got a loan with Westpac for both land and build. Loan settled about 1 year ago.
Builder never started the build and unfortunately lost his license (some info here).
Now, I am finally out of the contract and have engaged another builder and a project manager (I'm an expat working overseas).
The contract is for a turnkey build, however there are some desirable items that are not covered by the builder:
Apparently, although I already have a loan, Westpac will refer my account to credit again due the change in contract.
My broker says that these costst must all be in the contract or the bank will not take them into account when financing the construction.
The builder will not put costs in the contract that are outside of their scope of work.
I have heard of people who got finance by giving the bank the build contract plus quotes for the remaining work outside of the builder's scope.
I am after some advice as to what I could do to resolve this.
Is Westpac being inflexible?
Is the broker right in asking for all costs to be in the contract?
Any info will be much appreciated.
BP
Got in a contract with a builder (through same agent).
Got a loan with Westpac for both land and build. Loan settled about 1 year ago.
Builder never started the build and unfortunately lost his license (some info here).
Now, I am finally out of the contract and have engaged another builder and a project manager (I'm an expat working overseas).
The contract is for a turnkey build, however there are some desirable items that are not covered by the builder:
- Council contribution. They pay for one of the houses, not the second
- Retaining wall - they do have a retaining wall on the contract, but I may need another one for the backyard as the block in on a slope
- Project management costs - the PM is not related to the builder
- Turf and landscaping
Apparently, although I already have a loan, Westpac will refer my account to credit again due the change in contract.
My broker says that these costst must all be in the contract or the bank will not take them into account when financing the construction.
The builder will not put costs in the contract that are outside of their scope of work.
I have heard of people who got finance by giving the bank the build contract plus quotes for the remaining work outside of the builder's scope.
I am after some advice as to what I could do to resolve this.
Is Westpac being inflexible?
Is the broker right in asking for all costs to be in the contract?
Any info will be much appreciated.
BP