Let’s get one thing straight. A fixed price only ‘fixes’ those items already included in your tender. What’s not included is the ‘unexpected’. For instance, your builder discovers a rock shelf, one metre below the surface. It needs to be jack hammered (or excavated somehow). That’ll cost extra and your builder has every right to pass these costs on to you. We take a closer look at what this all means in the brochure.
Residential Fixed Price Building Contracts:
These generally make allowances for some variations to construction (such as removing rock) and the contract price is adjusted accordingly. Their purpose is twofold:
- Protect the builder from unexpected costs
- Protect the buyer from dodgy builders.
What lurks beneath?
Usually before a contract is drawn up, the diligent, honest builder will do a little extra legwork to ascertain what the site conditions are, what to expect, and how to solve problems before they becomes financial headaches for both parties. However, if you’re aware of any site problems at all – or suspect there could be a problem, please alert your builder to them. This will provide a vital ‘heads-up’ that’ll help your builder determine solutions, timings and costings.
Perception and Reality
The builder can then adjust the contract price to a totally realistic figure. This could be higher than a competitive quote – but it’s honest, transparent and dedicated to providing the best outcome possible. If no problems arise, nobody’s out of pocket and you can pay a reduced contract price. Win win.
At Simone Homes, we commit to that extra legwork up front because we want our price to be as fixed as possible. And this is why we take that extra time to get to know you and your unique situation.
At the end of the day, we hate unexpected costs as much as you