Building contract deposit refund

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ronnie s

Member
20 May 2023
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-I signed the building contract on 08/22. The price on the contract for a double story house was $620K and the site cost was told to be fixed before signing the contract. I paid 5% deposit to the builder (I HAVEN'T ASKED ABOUT BUILDING INSURANCE) which was $31k even before signing the contract on 08/22 as per their request. After 5 months, I have received an email that plans (Engineering, Energy, Property Information) have now been assessed and to meet structural, council and energy rating/requirement, there have been few upgrades/additions to your original quote and sent me a variation invoice of $34k and asked to pay before submitting the building permit. This cost was for double glazed windows and doors of the entire house ($29k), upgrade heating and cooling reverse cycle unit ($3.1k), extra site cost assessment ($1.4k) and Re-Establishment Survey ($1.2k). At the time of the signing contract, I was not informed about any of such huge variations and on floor plan entire windows and doors of the house were double glazed. I requested them that I was not told about such over the roof costs by your sales Consultant, and was told by the sales team that entire house have fixed site cost and I sent the floor plan (they sent me the contract note – owner will be liable for energy rating upgrades). After my request they ensured me that they will re-assess the energy rating and this time told that they need to double glazed 5 windows ($7.2k), upgrade the insulation ($4k), extra site cost ($1.5k) and my reverse cycle unit needs to be upgraded and the pricing was not added just to comply with the contract price (as per the contract total price of the variations can’t be more than 2% of the contract price) although upgrade to this unit was listed $3.1 k previously. It was total 12.5 k on invoice. At this stage, I had a serious doubt on the professionalism and I asked if they happy to give me in writing that they will not send me any variation invoice in future, I go ahead with them (though it was a huge cost on my pocket) but they even refused to do so. I requested them that if you are not able to provide me the services you promised in the contract then it will be good to return my deposit.

I paid them $31k and now few days ago received an email saying they can return only $4.5k. They sent an invoice stating sales consultant charges ($7k), office overhead charges ($15K) and draftee charges etc. I am kept the entire conversation via email. I recently submitted my application to DBDRV as well. I AM JUST WONDERING IF BUILDER REFUSED TO RETURN DEPOSIT, WHAT ARE MY CHANCES OF GETTING IT BACK? I AM HAPPY TO PAY FOR THEIR EXPENSE (5k genuine) BUT AM I LIABLE FOR Consultant commission ($7k), office overhead charges ($15K) AS WELL??
 

Rod

Lawyer
LawConnect (LawTap) Verified
27 May 2014
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www.hutchinsonlegal.com.au
Looks like you are in Vic. Suggest you give our office call to see what can be done. Probably best not to talk to them again until you get legal advice else you may compromise your rights.
 

MeadowPearson

Active Member
14 February 2024
6
0
31
If you're feeling unsure about how to proceed, you might want to consider seeking advice from professionals such as building consultants or legal experts who specialize in construction contracts. They can provide you with guidance on your rights and options moving forward.
 

MeadowPearson

Active Member
14 February 2024
6
0
31
In the meantime, try to gather as much documentation as possible to support your case, including any correspondence with the builder and the original contract agreement. Being well-prepared will help you navigate this situation more effectively.
For further assistance and guidance on handling contract disputes and unexpected costs, you may want to consult with starkbuilders.com.au. They can offer valuable insights and advice tailored to your specific situation.