Contracts
Bankrupt Builder – Getting Finished
If your new home is under construction when the house is being built you could be presented with something like this. Here are the steps that need to be followed with the insurer to finish the house: The insurer should…
Read more
Your New House Contract
The most important document you sign is the ‘New Home Contract’. This document describes the house to be constructed and provides remedies to deal with any defaults by the builder or the house owner. The more you understand the contents…
Read more
Contracts – Provisional Sums
All new house building contracts will have a section for Provisional Sums. These are used for work that MAY be required, but the builder can’t provide an accurate estimate at the time of signing of the Contract. The main area…
Read more
Contracts – Site Possession
Under the terms of a “Standard’ Building Contract you will be required to grant the builder ‘Exclusive Possession’ of the site once the builder is ready to start. This means that the builder is responsible for, and is able to…
Read more
Contracts – Prime Cost Items
Some new house building contracts will have ‘Prime Cost’ items. These are used for fixtures, or fittings, which the Client requires, but have not been finally selected prior to signing the Contract. An example would be they want a professional…
Read more
Builder Bankruptcy – Getting Information Together
Well if you have followed the advice of the initial Bankruptcy Post you should have stopped all payments and made the site secure. This will protect the money you have paid to date. The next step is to get all…
Read more
If The Builder Goes Bust
House Building can be a high risk business…………..so what happens if the builder of your new house goes bust? Legally Your house building contract should have clauses included for the eventuality of the builder becoming insolvent. Read the contract carefully…
Read more
Standard Building Contract or ‘Owner Builder Contract’
Some small builders may suggest they can package build a house cheaper for you if you become an ‘Owner Builder’*. * Not be confused with True ‘Owner Building’ where you have the skills and propose doing a lot of the…
Read more
After The Deposit
If you decide that you want a house built by a builder you will normally be given a budget price and asked to pay a deposit. What happens next? These are the steps that follow in progressing to a full…
Read more
Understanding Contracts – Liquidated Damages
There is the opportunity in the standard new house building contracts to be compensated if the building takes longer than the agreed ‘Contract Period‘. This is called ‘Liquidated Damages’. The basis of the ‘Damages’ that the builder is likely to…
Read more