Commercial building contract, expert administration SAVES A BUNDLE!

I was called because the client was unhappy about air-conditioning system she was getting in her new commercial development. When I inspected the job and looked at the documentation it was a revelation.

Building contract administration “sounds so boring”, it is until you start looking at the figures and realise “I grabbed the tiger by the tail! ”

The project documentation and the contract administration was woeful and unbefitting professional civil engineer who was the builder. As qualified quantity surveyor and experienced commercial building contract administrator I worked through the issues and found out that my client was overcharged by about $250,000. On top of that my inspections identified numerous building defects, non compliance with BCA, the contract and the planning permit conditions. One of the items of overcharge was a contingency sum of $ 50,000 which is the money in the contract belonging to the owner and not the builder. Builder simply appropriated it as if it was his, $50,000 is not much when you say it quick. In other cases items that were included in the building contract were double claimed under provisional sums as well or as fresh variations.

Numerous inspections and conferences followed and I guided my client to successful completion and in the end she still saved around $250,000

My asian client had signed a building contract in excess of $ 1.5M without full understanding and  without professional help.

In this case she picked up the phone and was lucky to get the right person to look after her. I have since assisted her on her other developments.

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Foundation heave, New home ruined, INVESTMENT DESTROYED!

Yesterday I inspected a two year home that is comprehensively ruined by foundation heave. What you see here is the worst part but the slab has moved throughout the home. This happens when home is built on highly reactive clay foundation that becomes wet and swells.

 

The owner, interstate investor, who bought this home off the plan has contacted the builder  but was told ” sorry it’s your defective paving that has caused the problem”. There have been no independent pre final inspections that would have picked up the potential problems or to properly advise the owner.

The owner is now facing ruinous investment, the story is still developing, stay tuned.

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Building Dispute, Provisional Sum Blows, Owner takes a HIT.

Recently I was involved in a building dispute where provisional sum blew out from $5000 to $ 20,000 . Now that is a nasty surprise for any budget and my clients were very upset and this come on top of a broken relationship with the builder, mistrust and allegations of mistreatment. My clients accused the builder of disrespect.

Provisional sums are inclusions in the contract of sums of money when the exact cost cannot be determined at the time of contract and adjustment is made against actual costs, when the costs become known. Furthermore there is a warranty under Domestic Contracts Building Act 1995 against cost blowout.

Builder had claimed that costs of storm water drainage increased because the block could not be naturally drained and a new pipe had to be laid in the road to another pit in the road.

I had a good look at all documentation and found that all the information and levels were there(on planning permit drawings) for the builder to see at the time of pricing the job but he clearly did not or his estimator was incompetent.

My view then was that it was builder’s responsibility was to pay for any costs above $5000 because the liability for the costs of drainage was there right from the start.

The dispute could not be settled and went to VCAT mediation where it became a stalemate. I was confident he could win in a full hearing but then I became aware how ill my client has become over this and the degradation from the builder.

A deal was brokered where my clients walked away with a $5000 refund from the builder  a victory and a moral high ground. (It was still a $10,000 hit in the pocket+ the costs of my reports and attendance)

 

 

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Defective Brickwork, what goes up, sometimes it must come down!

My client was building a big beautiful two storey home a block away from the beach and the builder was one of the top tier volume builders. Brickwork was finished and it’s appearance was unbefitting good workmanship and the tolerances required. The mortar was chalky and it appeared too soft.

I recommended mortar test and it came back indicating inadequate cement content. It did not comply with BCA. The builder tried too propose that raking out mortar and repointing would overcome the problem of mortar durability. This type of solution however could not address the fact that because of inadequate cement content, the resulting softness of mortar compromised brick tie bond to framework.

During inspections I also picked up that the builder was using  lightweight brick ties of wrong material and that also did not comply with BCA. Higher grade of brick ties and or stainless steel brick ties were required in proximity of the beach.

This was the nail in the coffin for the brickwork and it had to come down. So it did.

Brickwork was demolished and rebuilt by the builder at builder’s expense.

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Newsflash! Family dies in a fire! True? No but it could be!

Yesterday I inspected a home in Geelong and the single smoke detector was missing

 

People regularly die in house fires where smoke detectors are defective or missing. This very minute there are hundreds of families at risk. So before you go to bed tonight,

CHECK THAT YOUR SMOKE DETECTORS ARE WORKING

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Pre slab inspection. Just when you thought it could not get worse, it just did