Questions to ask your builder

We’ve previously shared how important it is to check the fine print on your contract or quote to ensure your fixed price build is indeed genuinely fixed price.

Here are some of the important questions to ask your builder before signing on the dotted line:

Contours

The majority of land is sold ‘off the plan’. The developer generally provides a contour plan that shows how steep or level the blocks are.

This is an approximate representation of how the block of land will be when the land is registered, after all dirt has been moved and roads and services have been put into the estate. But what happens if, when you go to start the build process, the builder’s surveyor carries out their own contour survey and there is a difference between the developer’s plan and the builder’s plan. If you have already signed a contract with a builder who is not a fixed priced builder this can be a costly problem. The builder’s contour plan may show the block is not as flat as previously thought and the house that you believed would be on one level may have to be split or have stairs leading from the garage to the house. This could add $15,000-$20,000 or more onto your build costs.

BASIX

The Building Sustainability Index (BASIX) is a sustainable planning scheme that was introduced to regulate the energy efficiency of residential buildings in NSW and aims to reduce water consumption and greenhouse gas emissions.

Do you know if your home has been priced correctly for BASIX requirements? If, when the builder goes to obtain the BASIX certificate, there are items that need to be added to pass the assessment (for example, more insulation or more ceiling fans) who pays for this? Is it an extra cost your builder will charge? If you are with a genuine fixed priced builder any extras like this are covered.

Price rises

Is your contract locked in for any unforeseen price rises? We all know that as a result of Covid-19 there has been a huge demand on suppliers and materials - prices are going up weekly, even daily! Whilst the HomeBuilder grant scheme finished in 2021, it is also still having an impact on supply. Previously there may have been a price rise on materials once or twice a year, whereas now price rises are happening on a continual basis. This obviously affects the build price of a home.

Has your builder genuinely locked in your build price? If not, is there an indication on when the price may be reviewed? These are crazy and stressful times in the building industry and builders will need to pass on their rising costs.  So that $45,000 cash bonus to entice you to sign may not be a bonus after all if you need to pay this out in a price rise contract clause.

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.