All Topics / Value Adding / How do you get a builder to finish your job?

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  • Profile photo of natwayne28707natwayne28707
    Member
    @natwayne28707
    Join Date: 2003
    Post Count: 29

    Hi

    I am currently building with one of the bigger housing companies in Perth. The house has gone over the contract completion date due to brick delays, labour delays and I think a lack of them really caring.

    Does anyone have any ideas on how to get the builder to finish my job asap. Tried having a meeting with the contract manager went to meeting but they hadn’t told us they had relocated to Canning Vale WA. Do you think the building supervisor and contract administrator would be open to bribes. A little bribe wouldn’t really cost me anything extra as it is money that would only end up being paid in rent in the long run.

    thanks

    Wayne

    Profile photo of Fast LaneFast Lane
    Member
    @fast-lane
    Join Date: 2004
    Post Count: 527

    A bribe is a good idea, but a Solicitor’s letter might be even more effective. At last resort there’s always the option of some bad publicity for the builder in question (whichever way you decide to swing that).[wink]

    Profile photo of MichaelYardneyMichaelYardney
    Participant
    @michaelyardney
    Join Date: 2001
    Post Count: 616

    Do you have penalty provisions in your building contract.

    All contracts include them, but many builders try and leave this section blank.

    A realistically harsh penalty for delays is the best inducement I have found to keep builders on time.

    Michael Yardney
    METROPOLE PROPERTIES
    Author of Australia’s leading property e-magazine.
    Join over 10,000 readers each month.
    FREE subscription http://www.metropole.com.au

    Profile photo of natwayne28707natwayne28707
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    @natwayne28707
    Join Date: 2003
    Post Count: 29

    Hi

    I have what seems to be a generic building contract which says that the builder will pay liquidated damages at the rate of 20 dollars per day for each day beyond the due date for practical completion. But it also says the builder shall not be resposible for any delays in commencing the work due to labour and material delays etc. Looks to me as they cover themselves well.

    Contract says house should be finished within 145 working days from slab going down. For months I have been trying to find out when exactly this 145 working days is up but no one at the building company seems to know. Contract administrators keep leaving cause always get abused. (no it wasn’t my fault).

    The funny thing is rang them today and they seem to be trying to get the roof and tiles on within 2 weeks.

    Profile photo of AUSPROPAUSPROP
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    @ausprop
    Join Date: 2003
    Post Count: 953

    “but no one at the building company seems to know”

    sorry natwayne but I have to laugh – I have been going thru the very same thing. I suspect that the contract is so loaded in their favour that they never have to pay penalties hence no one has had to work out when that time was up! my good friend who has plenty of time and is completely anal did manage to get the $20 a day out of them though!



    http://www.megainvestments.com.au

    Extensive list of ‘Off The Plan’ property available for sale in Perth.

    John – 0419 198 856

    Profile photo of Paul.PropertyPaul.Property
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    @wrx928
    Join Date: 2005
    Post Count: 8

    Hold back their payments. Money talks all languages.

    PW

    pw

    Profile photo of kpkp
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    @kp
    Join Date: 2004
    Post Count: 509

    Hold back their payments. Money talks all languages.

    Self defeating…
    Gives them another excuse to take longer…and your holding costs are still accumulating.
    Keep hassling them with phone calls, emails, etc.
    Give them the opportunity to do the right thing before issueing the ultimatum that if they dont perform, the “advise you have been given will be to lodge a complaint with the builders dispute/complaints tribunal”
    This body has teeth and can revoke a builders licence.

    This is exactly the advise I was given ( by a legal person) and it seems to have worked.

    Good luck with it !!

    Profile photo of XeniaXenia
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    @xenia
    Join Date: 2002
    Post Count: 1,231

    does anyone know the exact wording to put into a building contract for penalty provisions?

    We buy properties in all conditions. Quick settlements, no agents required
    [email protected]
    phone 0412 437 582

    Profile photo of jhopperjhopper
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    @jhopper
    Join Date: 2004
    Post Count: 278

    I suspect that, as a client to a major residential builder, you will probably have a heap of trouble trying to change their “standard” contract. In WA at the moment, residential contruction is still booming and they can really take the work that they want. I would think the moment someone wants to change the contract so it isn’t as biased towards the builder they will take the stance that “this is our standard contract” and cannot be changed.

    Of course this is utter rubbish and every contract can be changed by simply ruling a line through a clause or writing a new line in.

    Dr X, in terms of what wording to use, logic should dictate. I read contracts every day and find it extremely frustrating when some clever lawyer leads you around in circles. They really should be simple and fair to both parties. Noting below someones contract with delay penalties of $20 per day, you really need a value that covers your costs if delay actually occurs. That might include rent or loss of rent, interest charges, etc.

    As for when these are applicable, usually they are applied when the delay is not within their control. Typically with larger contracts, labour is within their control and materials sometimes is and sometimes isn’t. Really, the only viable delay is an “act of god”, union action or inclement weather. In larger contracts they also have to apply for an extension of time, however don’t think this really applies to the smaller jobs.

    In the end what it comes down to is that, unless you are confident that you know what they mean, get a contract read and interpretted by a legal or experienced person. You can always go to other builders who will be flexible if this one is not.

    Enough waffle from me, good luck!

    Profile photo of awfishawfish
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    @awfish
    Join Date: 2005
    Post Count: 9

    Hi there,

    It sounds like you may be getting a bit shafted. I would seek advice from your state governing body (we have dept. of fair trading here, not sure who it is in WA). But you need to check a few things first. Namely, check when the contract period started. For HIA contracts, this is 4 weeks after all paperwork (ie. proof of capacity to pay, construction certs, proof of ownership, etc.) has been submitted to the builder and contracts signed. So figure out what that day was, add your construction period and that will be your completion date.

    Someone mentioned withholding cash. I would imagine that there is a standard progress payment setup as with most builder’s contracts, and that the builder cannot claim payment until a stage has been met. Hence, if the stage hasn’t yet been met (ie. completion) there is no payment that can be withheld.

    145 working days roughly means 29 working weeks – PLENTY of time to build an average house, even allowing for delays in materials. (There should also be a definition of a working day in your contract). However, if your contract is anything like the ones I use, there will be allowances for industry shutdown period, material delays, etc. The thing is, we can’t claim for these time extensions unless we address them AT THE TIME in writing. For example, I would have to write a letter to the client saying “our bricks are delayed by 2 weeks, we can’t work ’til we get them, the contract period is going to be extended 2 weeks”. You’d then have the opportunity to see this, maybe negotiate a little, and then sign the variation (even non-monetary variations need to be signed).

    Granted, most generic building contracts are written up from the builder’s point of view. However I believe that they can be made fair to both parties, and you can even exert a little pressure on a builder. We recently signed a contract with a developer whereby there was a contract completion date with an equal bonus payable to us for every day in advance of the contract that we finished, and liquidated damages of the same amount for every day in arrears. Make it a decent sum and builders will listen. You should also be able to figure out how much the loan (or rent) is costing you by the end of the project.

    Cheers,

    Andrew.

    PS. Don’t try bribes. It just reduces your credibility should the case ever need to be heard in a tribunal/courtroom.

    Profile photo of MsElvisMsElvis
    Member
    @mselvis
    Join Date: 2003
    Post Count: 26

    I don’t know if this will be helpful or not but it works for me.

    I always ask to speak to management (go straight to the top). I then tell them in a very calm yet straight manner that I’m not satisfied and that if the problem does not get resolved I assert myself by saying “It’s a known fact that if you do a good job clients may tell a few people but if you don’t they will tell everyone.” I then add “If you don’t fix this problem I will make sure I tell everyone how dissatified I am.” I then put it back on to them by asking “is this the type of publicity you wish to create?” I make sure they know I am serious!

    Its direct, sincere and effective without being aggressive. It has never let me down.

    Good luck

    Profile photo of natwayne28707natwayne28707
    Member
    @natwayne28707
    Join Date: 2003
    Post Count: 29

    Sounds like a good technique. Could always tell them that I am in the process of another couple of developments and will have to look for another builder next time.

    Have tryed speaking to management, but they had forgot to tell me that they had restructured and moved there office, so turned up to the meeting and the manager was located at a different office.

    I will have to try and arrange a meeting with Len Buckridge but not sure if he would be interested now he is selling up

    Profile photo of smaansmaan
    Member
    @smaan
    Join Date: 2004
    Post Count: 6

    Hi, this is my first time on the forum, thought i’d put in my two bobs worth if it’s of any interest. We built 4 years ago with a reputable company and were told 15 wks for completion. My husband is in the building trade and wanted to do some of the work but they would not allow this as they didn’t want any hold ups along the way, So they could have their own tradesmen in there one after the other with no delays. Due to any bad weather it was like 1 bad day of rain equalled to 1 extra week of work. Luckily our home was completed within the set time frame. On the other hand my parents also built with a supposedly reputable company only to have them walk off the job. It all started with the concretors – the foundation being too short which he blamed his son (a teenager on school holidays helping out his father) which then lead to problems for other tradesmen one after the other. The builders were wanting payment up front for work they hadn’t even started/completed. Dept Fair Trade were brought in to mediate btwn my parents and builder, eventually the builders walked off the job, my parents had all the evidence (my mum would video/photo everything as this is what an independant inspector had told her to do) it was taken to court and my parents were compensated and given the okay to complete the job themselves (but also loosing thousands of $ for legal costs) as for the builders they declared bankruptcy and set up another company in another name. Apparently the supervisor wasn’t even properly licensed to begin with.
    In the long run it eventually took my parents over 2 years to build when it was only supposed to be however many weeks contract.You just can’t win, you get the good and bad.
    All the best and good luck.

    Tania

    Profile photo of wealth4life.comwealth4life.com
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    @wealth4life.com
    Join Date: 2003
    Post Count: 1,248

    Wow why do so many people get caught in this trap.

    Sounds like you need a solicator, also claim for losses and damages because of delays including interest charges.

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