What should I do? Please advice

[Aulyna]

I am building a house, and received a Notice of Practical Completion from the builder. He is asking for the final payment, $7k, before he gives the keys.

The problem is I do not agree the construction is at “Practical Completion”. There are quite a few things which have not been done, such as
1. landscaping, with allowance of $7k
2. two water tanks
3. cloth lines
4....

The contract defines “Practical Completion” is when the Works are completed except for minor omissions and minor defects which do not prevent the Works from being reasonably fit for occupation or use by the Owner.

According to the contract, the house should be finished two month ago. As I feel the builder is a bit unreliable, I am worrying he gets all the money and walks away. In fact, the allowance for landscaping alone is more than the final payment he required. That is, the builder already got paid for what he has not done.

My questions are:
1. Is it at the stage of practical completed?
2. Who has the final say to decide if it is Practical Completion?
3. On the contract, a clause states if the house is built after the deadline, liquidation would be paid. How and when I can claim the liquidation? Before or after the final payment?

Any advice is welcome. Many thanks.

 

[Ocean Architect]

oright. heres how it goes.

practical completion is where the house is fit for habitation. this means:

house is fit for habitation
house is lock upabble

the only difference between fit for habitation and handover is that handover requires a conveyouncer to deliver the property into your name. At handover, money changes hands.

question 1
probably

question 2
whoever says it's fit for habitation ie the builder

quesion 3
whatever the contract says, and is open to interpretation aka shitfights

In general, make that ******* fight for the 7k. Every bit of no more gap. every loose doorhandle. if you dont get work out of him now, you lose. If you give the 7k at all imo. Just say no and see what they do. All of a sudden those little fixups take priority badly - burn them.

 

[Aulyna]

Thanks Ocean Architect

Thanks Ocean Architect for your kind reply.

There are people waiting to move in for $600/w, but I could not sign the lease, as i'm not sure when I can have the key ;-(

The contract says, $450/week paid from rent to builder if the house finished earlier or same amount money paid by the builder if the house build overtime. That would be about $2.5k paid by the builder with over 2month delay.

The builder said the landscaping will be done next week. if that's true, when i pay the final payment, should i pay the builder the full last payment to get the key first, and ask for the $2.5k later; or I should deduct the $2.5k from the payment?

Thanks for your advice

 

[Aulyna]

Thanks for all advice.

More problem to come:

Met the builder and his landscaper for landscaping yesterday morning.

There is a concrete area on the landscaping plan. but he said it could not be covered in the allowance. The quote is almost double the allowance.

Is it correct: builder give a low allowance, does not matter what on your plan?

Can I ask the landscaping allowance back and do the landscaping later?

Thanks for your help ;-)