All Topics / Legal & Accounting / Amending contracts from builders

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  • Profile photo of LinarLinar
    Member
    @linar
    Join Date: 2004
    Post Count: 567

    I am just about to sign a contract with a major building company to have a house built in Victoria.

    Has anyone had success in getting a contract from a major builder amended to have more favourable terms for the purchaser?  Or do they just stick to their guns and say that if you don't like their contract then go to another builder?

    Cheers

    K

    Profile photo of Scott No MatesScott No Mates
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    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856

    Linar, the building contracts used by most builders are industry standard contracts eg HIA, MBA or RAIA approved contracts. Amendment to these contracts other than the options provided are generally not in the interests of either party as the contracts in their approved form have been tried and tested (even if they are a bit one sided) – try to use an RAIA contract as they tend to be biassed toward their client not the builder.

    Profile photo of tammytammy
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    @tammy
    Join Date: 2005
    Post Count: 155

    I guess it depends on what you are trying to change. I recently negotiated to alter the penalty for the construction going over the contract period. Not that it is easy to determine as all building supply delays and days "where precipitation occurs in the area" are added to the contract. It was more of an aknowledgement of my desire to have the job completed as promptly as possible, and that said it only changed the penalty rate from $10 per week to $100.

    What is it that you are wishing to negotiate?

    Tammy

    Profile photo of simezsimez
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    @simez
    Join Date: 2008
    Post Count: 3

    Linar,
    As scott said there are a range of preformed contracts however there are there to protect both parties(in theory). That being said all building contracts including pre formed ones like the HIA and MBA contracts all favor the consumer provided they have a understanding of the building contracts act. Knowing the loop holes is a good way to get things done for free.

    Profile photo of tammytammy
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    @tammy
    Join Date: 2005
    Post Count: 155

    Hi Simez,

    By all means feel free to share these loopholes, or point me in the right direction. I am very happy to do my own reading, I just didnt realise there may have been loopholes.

    Thank you in advance
    Tammy

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856

    It all revolves around what is not there rather than what is contained in the contract. Good documentation & good contracts leave little room to move.

    I would strongly suggest that if you were considering entering into a building contract for a reasonable project ($500k +) then engage a good contracts administrator or QS to review the contract  prior to entering the agreement. Managing the project is one thing, managing the contract is another totally separate issue (hence builders have their own project managers, qs, contracts & project administrators).

    Buy a copy of any contract guidance notes prepared by the HIA/MBA for contractors.

    Profile photo of Deano67Deano67
    Member
    @deano67
    Join Date: 2007
    Post Count: 3

    linar,
    I hope to god you havn't signed with a company called clarendon homes! I am just in the process of finishing off a house i had built with these jokers!(currently with the building commission)the problem with these sorts of builder's is the quality of trades that do the work. they usally find the the cheapest half assed people in the industry, not good for the finished product.
    if you do go with one do not budge on the liquidated damages, get as much per week as you can(time is money) then it is in their best interest to get the job done on time.
    cheers 
    D

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