All Topics / Help Needed! / Help With HIA Building Contracts

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  • Profile photo of Gregory SGregory S
    Participant
    @gregorys
    Join Date: 2015
    Post Count: 2
    June 9, 2015 - 4:53 pm

    Hi All,
    We are building a new home in Victoria and are about to execute a standard HIA building contract with the builder. There are a few items that I am unsure about. Was wondering anyone with experience on this can advise if this is within the accepted norms or should I negotiate these items.

    Standard HIA contract, Page 6, Item 1.

    Time For Completion : 270 days
    Estimated delays :
    – Incremental weather : 40 days
    – Weekend, public holidays etc : 40 days
    – Other days : 15 days

    Are the above time frames normal ?

    HIA contract Page 8 :

    – Item 8 : Agreed interest for late progress payment : $20% Per annum
    – Item 9 : Damages for delays : $150 per week
    – Item 12 :Agreed damages for delays : $150 per week

    What about late payment fee of 20%, this seems way above the standard lending rates considering that they only want to pay $150 per week for delays.

    At the end of the contract, the builder has included a couple of sheets titled “Specification”. One of them says :

    PRELIMINARY SITE WORKS
    – Clearing of site by Owner or A Contract Variation
    – Excavation of rock by Owner or a Contract Variation

    Again is the above normal considering that they have already done a site inspection and costed for site costs of about $10,000.

    TIA
    Greg

    Profile photo of shaunmb88shaunmb88
    Participant
    @shaunmb88
    Join Date: 2014
    Post Count: 13
    June 11, 2015 - 7:24 pm

    270 days sounds like it’s a decent size house? How many m2?

    Clearing of site by owner will be referring to grass, trees, rubbish. Is there any of that on there?
    Excavation of rock will be for when they cut the block and/or drill for piers. Most builders don’t allow for it in the contract because it is something of the unknown and can get costly or you may not hit rock at all. Most of the time a builder can tell by the soil test if done properly. What class is your soil?

    Profile photo of Gregory SGregory S
    Participant
    @gregorys
    Join Date: 2015
    Post Count: 2
    June 11, 2015 - 7:51 pm

    Hi Shaumb88,
    Its about 23sqs. 3 bed, theatre, living, family, meal + double garage. About $190k includes site cost.

    No, there is no rubbish, grass or trees etc. Lot is clear and quite level. Contract says it needs a “P” class slab.

    Cheers
    Greg

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