House Not Handed over Even after 20 Months since Construction Start

LoveOz on 06/08/2022 - 10:01
Last edited 06/08/2022 - 10:30 by 1 other user

It has been 20 months since the site start. It has been 5 months since completion of fixing stage. The next stage is Practical Completion Inspection (PCI) and the builder keep pushing the completion date for this stage.

I am conscious of current market conditions with labour / material shortage and increase in construction costs.

However with raising interest rates and no income on this property, it is hurting me badly. I can only afford to pay mortgage for 2 more months without handover of the house.

I do not want to make situation worse by doing anything in rush especially when the house is at the last stage of the construction.

What are the options in this situation ?

Home & Garden

Comments

  • Ocker on 06/08/2022 - 10:06
    +7

    Something not right as logically the builder would want to get the PCI asap and get paid for the property?

    • AndyC1 on 06/08/2022 - 10:10
      +1

      There could be a clause in the contract that is allot of buying off the plan contracts where if it is not completed with X time the contract is automatically rescinded, but this will be in the contract if this is the reason for the "delay".

      • LoveOz on 06/08/2022 - 11:31

        Contract says 261 calendar days completion including delays. This has already past in Nov 2021, however they previously sent a general email to all of their customers quoting below two clauses, that I believe, will not work in my favour.

        Builder’s entitlement to extensions of time: the general unavailability of any Materials necessary to carry out the Works;
        The Builder will not give effect to any variation requested by the Builder unless: the variation arose as a result of circumstances beyond the control of the Builder

        • netjock on 06/08/2022 - 11:44
          +4

          Builder’s entitlement to extensions of time

          Ask them to prove it. Might get them to start moving. Unless it is a unique part you have designated there is always substitutes at the same price if you want to take that option.

          I'd be more concerned you builder might be waiting for more cash flow to come in to pay for material and labour. At the moment builders are more like Ponzi schemes, new deposits paying off old contracts, if that flow is to stop then a lot of these guys are going bust.

    • LoveOz on 06/08/2022 - 11:35

      That is what I thought but with increase in material prices, it is possible that builder may end up spending more than what he will receive from me as a final payment.

  • AndyC1 on 06/08/2022 - 10:08
    +4

    Have you read the contract you signed from start to the very end to see what options you have?
    After reading the contract fully I would then find a lawyer that specializes in building disputes and pay for a meeting to see what your options are and how long and how much it will cost.

  • sajidmib on 06/08/2022 - 10:13
    +2

    Tell them to issue you occupancy certificate and the rest like flooring and other things do it yourself and deduct bug chunk of money from them as in final payment.

    Get all Electrician and Plumbing certificate and warranties … buy all kitchen appliances yourself.

    Just find the way out in all legal terms so you are not left with out of pocket costs.

  • Baysew on 06/08/2022 - 10:31
    +2

    Hang on in there. Look for some part time work, the final stage must be coming up soon.

  • orangetrain on 06/08/2022 - 10:33
    +5

    Talk to your solicitor? If not, get one ASAP to look over your contract otherwise you're risking $$,$$$ that you spent already! Unfortunately, many builders hope owners will not use a lawyer and will likely have something in the contract that allows them to get away with it. So, you might be SOL.

  • barge-in hunter on 06/08/2022 - 10:57
    +2

    I agree that something fishy is going on. Speaking to a solicitor is definitely step 1, but I would also employ an independent building inspector and tell the builder they'll be on-site at a specific date/time.

    It might help to know if you bought it off the plan or engaged the builder direct/house and land.

    Unfortunately my gut feel is:
    1) builder is on the way under - and can't afford to finish the build… Maybe a question like "how much will it cost to get x signed off" might help
    2) there's a decent fault they're trying to chase up with a subcontractor and hoping it can get fixed without you knowing

    Good luck!

  • [Deactivated] on 06/08/2022 - 11:44

    Sell-up as/is & put funds towards o/s build!

    • kiitos on 07/08/2022 - 07:39

      What's o/s?

      • orangetrain on 07/08/2022 - 12:49

        overseas. Importing houses from China is all the range!

  • spal on 06/08/2022 - 12:12
    +4

    My recommendation will be to talk to the builder. Find out what is the issue. What happens at this stage is that a number of previous contractors need to come back to finish some of their earlier work. For example plumbers and electricians. There could be an issue with availability of their crews, or dispute between them on other project sites. Sometimes it could be something simple as the builder wants to pour the driveway and then clear the external site before they commence the flooring and other internal finishing work to project the work. If the concreter is not available or due to bad weather it cannot be poured, it pushes everyone back. Getting into a dispute without first finding out what is the issue and trying to resolve will only cause more pain. No dispute resolution process will get you relief within two months. For financial relief maybe go back to your lender and see if they will agree to some relief.
    We finished building our own house and moved in December last year. I know it is not easy, but making it difficult for the builder is not your solution. If you feel that something is fishy and the builder is going under, there isn't much you can do with that. You building is in final stages, and you would have made progress payments of what has been delivered so far. Talk to the builder, or even see if there are other projects of the same builder in the neighbourhood, see if they are facing these issues too.
    These are difficult times. Not much we can do.

  • AustriaBargain on 06/08/2022 - 12:51

    There's a house that's been going up near me for years. Apparently two years worth of scaffolding rental is is cheaper than hiring workers right now to finish it. And two years of lost out rent for the person building it.

    • Euphemistic on 06/08/2022 - 14:59

      Scaffolding may have been purchased, it’s sometimes cheaper to buy and sell thanit is too rent.

      Project could be or if money for a zillion reasons, especially covid/lockdown related.

  • Heaps for Cheaps on 06/08/2022 - 13:08
    +2

    The other options are to look at hardship options with your lender. Financial hardship is when a customer is willing and has the intention to pay, but is unable to meet their repayments or existing financial obligations, and with formal hardship assistance their financial situation can be restored.

    Many years ago I had some serious issues come up and I was able to have a lender freeze all payments for 3 months after which I resumed the ordinary payments an d the loan was now extended to account for the 3 months of no payments. It enables me to get some breathing room. There is a team your bank has specifically working with cases of financial hardship, you need to ask for them.

    https://www.ausbanking.org.au/wp-content/uploads/2019/04/Upd…

  • garetz on 06/08/2022 - 13:30
    +1

    Talk to a solicitor, if you are in such a dire financial situation you can goto the site with a locksmith and force repossession of the property, obviously this will probably piss off the builder, but seems like you have no other choice. By doing this you might also let the builder off the hook for any issues that are normally identified during a PCI but at this stage its better than losing the property due to running out of money.

    btw, this is obviously a final solution type of situation, if the property has major issues like no driveway then this is not advisable unless you are willing to complete the build yourself at your own cost then later sue the builder.

  • pharkurnell on 06/08/2022 - 14:47
    +1

    I'd be pooing my pants right now with all these companies going toes up or the other ones using clauses in contracts to cancel stuff…

  • Euphemistic on 06/08/2022 - 15:00
    +1

    Talk to the builder and find out what is required for the next step. If, as you say fit out has been completed months ago and just waiting for inspection there must be some reason for not finishing it.

    Plenty of other have suggested solicitor involvement. That sounds like a good plan.

  • iCandy on 07/08/2022 - 09:07
    +3

    Do you own the land and the builder is building your house or is it a house and land package? If house and land package, could the builder be trying to go beyond the sunset clause date so he can rescind your contract and sell at a higher price?

    • LoveOz on 07/08/2022 - 20:43
      +1

      It is not H&L package. I bought the land seperately.

      • Yola on 08/08/2022 - 03:46

        Sounds like that was a smart thing to do.

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