Contracts
Builder Bankruptcy – Getting Information Together
Well if you have followed the advice of the previous Bankruptcy Post you should have stopped all payments and made the site secure, to protect the money you have previously paid. The next step is to get all the information…
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Builder’s Bankruptcy – Finance
So the builder has become insolvent and the house is half built…………..what are the financial implications? To finish a partially built project using another builder is going to cost more than if your original builder finished the project. For an…
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Bankrupt Builder – Will The Insurance Be Enough?
I have previously talked about dealing with the mess when a builder goes bust. To make the financial aspects clearer a worked example follows: This is based on a contract for a house to be built for $300,000. A typical…
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Bankrupt Builder – Getting Finished
If your new house is under construction a typical procedure to finish the house with the insurer is: The insurer should appoint a building consultant. The consultant will inspect the house and work out the scope of works to complete the…
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Contracts – Site Possession
Under the terms of your 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 control,…
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Contracts – Contract Period
In your house building contract it will quote a Building Period. This starts when the contractor actually starts work (Site Clearance) The period will be in days. (Calendar days not working days) The time should allow for any expected loss…
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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…
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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 will be required, but have not been selected prior to signing the Contract. So the total contract price reflects the cost of…
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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…
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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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