Forums / Property Investing / Help Needed! / Headwork Charges are part of construction for duplex???

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  • Profile photo of JJ10JJ10
    Participant
    @jaydev
    Join Date: 2011
    Post Count: 16

    Hi Everyone,

    Need your help. I am constructing duplex in Toowoomba QLD. The property is up to fixing stage and now the builder just went into the administration. The construction can be finished with QBCC under builder’s insurance but denying to pay for the headwork charges for council. QBCC is considering headwork charges for the development of the land while my construction contract with builder clearly says that builder will pay $25000 for the headwork charges. On other hand council advises that they will not hand over the certificate until headwork charges are getting paid. Are headwork charges form the part of construction or not?

    Regards,

    JJ10

    Profile photo of BallerinaBallerina
    Participant
    @ballerina
    Join Date: 2011
    Post Count: 63

    No. Haedwork charges are not construction cost. If your contract includes headwork charges, it musts be added as a special condition.To register new titles, you will have more fees: council fee for plan sealing, surveyor/building format survey, solicitor for community management statement and registration of titles, insurance for first year…. can add up up to $10k. Not sure that QBCC will pay them either. Home Warranty Insurance covers construction, not development as a whole. Also, you are lucky that you have only duplex under construction, because this insurance DO NOT cover any development of 3 or more units. Happened to us! We had 5 under construction and builder weant belly up… No cover whatsoever.

    Ballerina | Soprano Developments Pty Ltd
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    Building Design & Property Development Services

    Profile photo of JJ10JJ10
    Participant
    @jaydev
    Join Date: 2011
    Post Count: 16

    Hi Ballerina,

    Thanks for the response. Yes my contract includes headwork charges as special condition. I understand that home warranty insurance covers construction, but I would think that certificate from the council should be part of construction. Anyway still awaiting for the response from QBCC about the headwork charges.
    Just out of curiosity, how did you end with your development then? How did you finish and where was that?

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