Newspaper article News Mail Bundaberg Qld.

More Great Q & A from the HIA

Newspaper article News Mail Bundaberg Qld.

More Great Q & A from the HIA

Article excerpt

(cont from p.28)

Q9. When can I request a variation to the contract?

A variation can be requested at any time during the contract and parties should refer to the variations clause in the contract. Generally, when you request a variation, the builder has the option to agree or refuse to carry out the variation.

Q10. What are prime cost items?

A primecCost (PC's) is an agreed, reasonable estimate for materials (fixtures and fittings) which you may not have selected at the time of entering into the contract. Usually, PC's are one-off items, however they can relate to a large number of items when the labour cost remains constant. Examples may include kitchen and bathroom items.

Q11. What are provisional sum items?

A Provisional Sum (PS's) is a reasonable estimate for material and labour of a particular part of the home which the builder cannot give a definite price for.

The reason being the owner had not decided what the want at the time of entering into the contract. Examples are pool and landscaping.

Q12. Does the builder need to provide evidence for increases in prime cost and provisional sum items?

The builder is required to quantify the extra claim if requested by the owner. That is, to give evidence of the cost of a prime cost item or a provisional sum item when claiming payment for that item.

Q13. How much deposit can the builder charge for home building work?

If a deposit is payable, make sure it is within the legal limit. Check the table below for the maximum amount you should be paying according to your state.

QLD: 10% if the contract price is less than $20,000; 5% if the contract price is $20,000 or more.

Q14. If I enter into a preliminary agreement do I have to sign a contract with the builder?

No, you don't have to sign a building contract. A preliminary agreement is a separate contract signed by you and the builder to carry out preliminary work. The type of work is usually defined on the agreement and can include things like soil tests, plan preparation, engineering, foundation design and site survey.

Although you may have a contract for the builder to carry out preliminary work you may not have a right to use the plans with another builder for reasons of copyright. …

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