Is your fixed price build genuinely a fixed price?
Seems like the answer should be a simple ‘yes’, doesn’t it? You fall in love with a house design advertised as a fixed price build and, even better, it’s within your budget. Life is good!
But this is where you need put your detective hat on. A lot of big (volume) builders say they are fixed price but this wording can often be followed by an asterix. Meaning, there are special conditions attached.
So, is a ‘fixed price’ build a genuine fixed price build if you have to pay for extra site costs? Well, not really.
The good news it that it IS possible to build a home and not have to hand over thousands more than the contract price to the builder.
If a builder says they offer a fixed price, then that price should not change no matter what happens on site or at Council approval.
For example, if the BASIX assessment of the home asks for extra ceiling fans to be installed into the home - a genuine fixed builder would not charge you for this change.
Likewise, if the builder carries out his own contour report (by his surveyor) and it is noted that the contours (the slope of the land )are different to what the land estate provided, a genuine fixed priced builder would not charge extra for adjusting the house plan to suit the slope.
Another example may be if the builder excavates the site and needs to transport soil away from the site, a genuine fixed builder will not charge you for the transportation of this soil and the dumping fees.
If the builder is a genuine fixed builder you will not be charged extra for anything at all during the build. The only items you would need to pay for are any upgrades to the standard inclusions and the connection and usage of your services.
It doesn’t have to be a given that when you build you are always going to have to pay extra money. You CAN build differently.
If you’re worried that your quote or contract might not be genuinely fixed price, we offer a tender health check to help you get the true picture - more details here.
Happy Building!
