Post Contract Variations

The best advice I can give is:

Avoid making Post Contract Variations
The reasons are:

Cost

Basically the builder holds all the cards once the contract is signed.

They can quote you the top price for the change…..plus a percentage for the variation which you will find in your contract (normally 20%)

If you deduct something you only get a reduction for the cost of the item and may have to pay an admin charge for any drawing changes.

There is a saying in the building industry the basic price is the Milk but the variations are the Cream!

Delay

Once you ask for a variation the gives the builder the reason to require an extension of time on the contract.

I have known of some high end builds to have doubled the cost and time of the build on Post contract variations.

Don’t rush signing the contract!……..It’s well worth taking some time and making sure you have made your mind up about what you want!
 

Also see When You Find Out the Cost

 

Subdivision Costs

Are you thinking about splitting an existing house block to get a 2nd house block for free?………..Well it might be cheap compared with an existing block in the same area, but it won’t be free!

The costs can easily exceed $20,000 for a simple dividing a single block in two.

Below are some indications of costs for a subdivision:

  • Surveyor  – Around $2,500 for a simple subdivision. but can easily double for more difficult sites where a specialist plannner and/or engineer may need to be involved.
  • Solicitor – Typically around $1000-$1500.
  • Application Fees – Land Title, Council Planning Permit and other Authority fees can easily add another $2,000.
  • Infrastructure Charges – A charge  fee that Councils, and Water Authorities, charge as your new lot will  be placing extra load on existing  infrastructure, This can vary considerably depending on both the State and Council area you live in.  Figures over $30,000 are not unknown for Inner City Subdivisions.
  • Installation of Services -Connecting; power, gas, water,  stormwater, and the sewer  can easily add several thousand to the price. If you are required to have a storm water detention tank then add another $10,000 -$50,000.
  • Access – A separate footpath crossing can add over $1,500 but if you have a Battleaxe Block it can easily be $3-4,000.

And that’s before you started constructing anything on the block!

Because of the many variables its worth spending some time researching the costs for your area before you go too far.

 Also see Subdivision Process

 

Post Number 300 – Most Popular Posts

Welcome to this the 300th Post on the anewhouse Web Site.

The site is currently getting around 4,900 visits a month with over 14,500 pages viewed each month.

Of those page visits the top 5 most popular pages (apart from the home page) are:

  1. Room Height – the leader 424 visits in the month.
  2. Construction Stage 3 – Lock Up – with 350 monthly visits.
  3. Construction Stage 4 – Fixing – gets 279 visits
  4. Agricultural Drains – coming up close behind at 258 visits.
  5. How Much Should Stage (Progress) Payments Be  – rounds up the top five with 210 visits.

What do you think is the most useful post?

 

Roller Shutters – Fail

Sorry if you like them……….. but I just don’t get roller shutters!

To me they just say someone has got it wrong.

You have a house built with nice big windows and then you install shutters.

Either the orientation is wrong,….or if its a security measure you bought in the wrong neighbourhood!

As far as security goes good Double Glazing can provide similar security, similar insulation, and lets the light in!

And as for houses like the one below which has shutters on upper floor, South facing, windows what are they worried about?

 

For more Unusual Houses and Fails see What the………………….?

 

Charged Drainage System

Thanks to SaveH2O, of Supadiverta

This diagram indicates a charged drainage system. These are sometimes called either a “wet” or a “pressure” system.

With this type of system a section of the pipe always remains full unlike a Conventional System.

As the pipes are under pressure it is essential all the joints in above ground and underground pipework are fully watertight

Advantages

  • A neater appearance than having pipes above ground.
  • Allows you to discharge water at a height above the ground level at the down pipe.

Disadvantages

  • It is more likely to block as the flow through the pipes can be fairly slow and the low points can collect silt. Silt will get deposited at flow rates below 0.6m/sec which will be the situation for most rainfall events.
  • It is also more difficult to unblock.
  • Can cost more with excavation and additional inspection fittings .
  • Potential for mosquito  breeding  in water unless appropriate screes are installed.

 

Also see Underground Pipes

 

No Lawn, No Water Garden

Lots of people seem to think…….

  • You have to have a lawn in your new house.
  • You need a full scale watering system.

Here are some pictures of the last garden we developed that has neither. We planted the garden near the house with clumps of native grasses, succulents and flaxes along a dry stream bed.

Further back, along the fence we used native shrubs and some palms.

When we plant I water the plant in and then water about a week later,. After that its on its own……if it dies it gets replaced with something hardier.

In case you think this is in a tropical area you would be wrong.

It’s in Werribee the driest Melbourne Suburb (40% less rain than than eastern suburbs).

The garden was planted in 2006 and the photos were taken in 2010 after 4 years of Victorian drought.

 

Also see Guerrilla Gardening

 

Parcel Furniture – Fail

Do you like getting parcels?…..then this furniture could be for you!

The photo is from the design site Dornob.com

To quote from their site “The ‘Soft Parcel’ furniture series by TAF Arkitekter is incredibly simple, covering blocks of foam with high-quality fabric in shades of white and kraft-paper-brown. The units can be stacked as desired to create benches, couches, ottomans and tables.

As for me I don’t want to live in a room that looks like a warehouse!…….Do you?

 

For more strange and interesting house photos see What The ……?.

 

Conventional Drainage

The vast majority of new houses will have a conventional (sometimes called a Gravity, or Open system) storm water drainage system discharging to either:

    • Public Surface Water Drain – Typically in Eastern States
    • Soakwells on Sandy Sites – Mainly in WA

 

With a conventional system like this the pipes are either vertical or at a slope towards the discharge point.

A feature of this system is that when there is no flow all the pipes are empty.

Advantages

  • Simple and inexpensive to design and construct.
  • If well designed, and constructed,  the speed of flow in the pipes will prevents silting and subsequent blockage.

Disadvantages

  • This type of system can look very untidy when taking water to a Rainwater Tank that is some way from many of the downspouts (It results in lengths of pipes suspended in mid air)
  • Difficult to transfer water to a discharge point that is above the ground level of the building, although below the gutter level. A problem often encountered on demolition and rebuild projects and battleaxe blocks.

If you are planning a rainwater tank or are having problems with getting storm water to a suitable discharge point you could consider a Closed System

 

Also see Underground Pipes

 

Final Cost – When Do You Find Out?

Some people think that when they pay an initial deposit, and leave the Builders Sales Office they know how much their house will cost…………..If you are unlucky, and/or don’t know how the system works you could be hit for unexpected costs in the order of tens of thousands of dollars.

These are the times when you find out about costs:

Initial Deposit

Unless you ask at this stage all you will know is the basic house price.

It will pay to spend sometime asking about what any alterations to the plan, brick and roof choices, and upgrades will cost.

Although you will get some information it is unlikely to be complete.

Pre-Contract

When you find out about site costs including:

  • Any Excavation /Fill
  • Additional Foundation Costs.
  • Restricted Site Costs – Generally for Demolish and Rebuild, and Battle Axe projects.
  • Potential Rock Cost.

You should also get the costs of any structural changes.

If you have got a flat site with good soil the extra costs can be minimal, an additional $5,000 wouldn’t be unusul for a typical site. If you have a difficult site it might be an extra $30,000 or more.

Selection*

The stage when you make all the “little” alterations such as:

  • Electrical fit out
  • Heating
  • Bathroom Fittings
  • Kitchen Fitings
  • Etc, Etc.

Be very careful at this stage, if you go for minor upgrades to the standard fit-out it could increase the costs by $1-2,000. Try to duplicate the Display Home and you can increase the base costs by 50%.

For more details why not get the Selection/Pre-Start Guide for only $4.

*Some Builders don’t do the selection of final fittings until the Pre-Start Meeting (after you have signed the Contract)

Contract

You will get an ‘Overall Build Cost” of the build with the site costs, together with all your amendments and upgrades.

A few things to check that might change the cost are:

  • Provisional Sums-Typically rock or Concrete piers
  • Prime Cost Items – Unusual items the contractor hasn’t been able to price.
  • Cost of Service Connections – Normally the contractors price will cover a distance of 5-6m. If you have a larger setback you may be charged separately.

Completion

This is the time when you find out what the total payments to the builder will be.

Unless you have made a number of Post Contact Variations, or the Provisional Sums haven’t been enough for the conditions encountered, it should be very close to the Contract Sum.

6 Months Later

I don’t know about you but I find there are lots of costs when I move into a new house.

For the first couple of weeks I seem to visit Bunnings at least every day for picture hooks, toilet roll holders, door hooks etc. etc.

Some of the bigger costs are:

  • Additional paths
  • Clothes hoist
  • Plants, and turf if you want an instant lawn
  • Curtains

 

For more information see What Will it Cost?

For help with Pre-Start/Selection see the anewhouse Guide

 

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