Beware of Escalation Clauses

escalation

What Are Escalation Clauses

These are a way of allowing for inflation. Basically it provides a way for the builder to increase his costs in line with inflation.

The Clause will quote an inflation index which can be used to adjust the stage payments.

When Are They Used

I have only used escalation clauses in [read more...]

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Using Your Own Building Inspector

DIGITAL CAMERA

I frequently hear of people being told by their Builder “You can’t use your own Building Inspector!”

If your builder says that, he is trying to Con You! ……or Breaking The Law!

Here is an explanation based on my last House Contract (HIA Standard Contract) . . . . . .

Possession

The builder [read more...]

Australian Standards

A lot of people people misunderstand how Australian Standards apply to Contracts so here is a quick guide.

Standards Australia

All Australian Standards (AS) are published by Standards Australia. which is a non-government organisation.

It’s role is to meet Australia’s need for relevant standards for quality in goods and services that are also consistent with [read more...]

Contract Meeting Advice

Contract Meeting (2)

It can seem like an age since you paid the initial deposit for your new house.

You have spent ages going through everything at Selection.

Surely you can just sign the contract and get started?………….That’s what the builder wants,………… but in my opinion you shouldn’t rush this step.

Time To Examine Contract

Most people [read more...]

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Using Your Own Tradies

When you look at some of the prices that builders charge for things it makes you wonder if you can get things cheaper by employing your own tradies during the build.

Examples are things like:

Refrigerated air conditioning. Extra lighting. High end bathroom fixtures.

Unfortunately its not always that simple. Some builder will allow you [read more...]

Post Contract Variations

The best advice I can give is:

“Avoid making Post Contract Variations” The reasons are:

Cost

Basically the builder holds all the cards once the contract is signed.

They can quote you the top price for the change…..plus a percentage for the variation which you will find in your [read more...]

Final Cost – When Do You Find Out?

Some people think that when they pay an initial deposit, and leave the Builders Sales Office they know how much their house will cost…………..If you are unlucky, and/or don’t know how the system works you could be hit for unexpected costs in the order of tens of thousands of dollars.

These are the times when [read more...]

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Contract Documents – Vehicle Access

gravel access

All Weather Access

You will notice in the contract documents a clause relating to All Weather Access. This normally requires the Landowner to provide all weather access to the site.

In other words a hard access from the nearest road to the site of your house wide enough to take a delivery truck. Typically this [read more...]