Control of costs is really important if you don’t want to run over budget on your new home.
One of the key areas in controlling costs is understanding the specification of the house.
One of the traps that many people fall into is paying a deposit based on an initial specification, They are then hit [read more...]
I’m always a bit suspicious of guarantees and warranties!
In my opinion most Guarantees are really just a piece of paper that explains how the Guarantor will fulfill their legal liabilities. (In some cases they explain a process which is less than fulfilling their liabilities)
Bearing in mind I’m not a lawyer this is how [read more...]
What Is A Cost Plus Contract
Basically it is a contract where you agree to pay all the builders ‘Direct Costs’ plus a ‘Fee for Administration and Profit’.
Rather than a quotation the builder provides an estimate with the actual cost being determined at the completion.
These type of contract are only supposed to be [read more...]
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...]
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) . . . . . .
The builder [read more...]
A lot of people people misunderstand how Australian Standards apply to Contracts so here is a quick guide.
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...]
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...]
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...]