Contracts
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…
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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…
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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…
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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…
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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…
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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…
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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…
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How Much Should Stage (Progress) Payments Be
When you contract someone to build a new house you are required to make regular payment as each STAGE is completed. . . . But how much? Well builders want to get paid as soon as possible so they will…
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Contract Documents – Order Of Importance
Of course the contract documents are the most important thing when organising the building of a new house. However not many people realise that some parts of the contract document are more ‘important’ than others. All three of these parts…
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No Rush To Sign
I hear a lot of people saying the builder has tried to get them to sign the contract at the selection meeting. They also worry about whether they can change anything. Don’t Rush It’s not as though the builder is…
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