Explaining Stroud Homes Fixed Price Building Contract

Explaining Fixed Price Building Contract

“A fixed price contract is exactly that, a fixed price contract with nothing more to pay, including all site costs,” says Stroud Homes Melbourne Western co-owner Rebecca Frazzica.

When building with Stroud Homes Melbourne Western, the team will do everything to research your land and the place where you want to build your home to make sure that all the cost is covered.

All  quotes are black and white; they include everything you need to know and are exceptionally easy to understand. We have a chat to Rebecca about all the things you need to know about fixed price contracts.


Can you explain what the Preliminary agreement includes prior to signing the fixed price contract?

A Preliminary agreement includes the following:

  • Soil test
  • Arrange a contour survey on the block of land: bushfire overlays, acoustic overlays, vegetation/conservation overlays, slope stability overlays, set back requirements (note this does not include the cost of the above overlays if a report is required).
  • Arrange preliminary working drawings
  • Arrange an engineered designed slab
  • Drafting of full working drawings
  • Arrange HSTP Percolation Test (when completed with soil test)
  • Administration fees


Is Stroud Homes Melbourne Western up front with all fees and charges, and are the PC sums in your quote comparable with all quotes received?

“Yes we are completely honest and it is something we pride ourselves on when dealing with our clients.”

We can recommend many clients who will give us positive feedback for our communication, honesty and high standards of work that we carry out.

We don’t do PC (provisional cost) sums as we carry out a free colour consultation with our colour consultant, and she ensures that all selections are made prior to going to contract and everything is correct.

Note: A provisional sum is an estimated cost and any amount not used by the end of the build gets credited back to the client. Evidence of the sum for those specific provisional items is also presented to the client.


Can all estimates or ‘provisional sums’ for items such as siteworks be determined exactly at the time of signing a fixed price contract?

They can’t be exactly determined until excavation begins, though generally the soil test we do in the preliminary agreement is a good indication and we trust that process.


If there will be any additional expenses, what may these include?

There should never be any additional expenses unless the client has chosen to upgrade a particular item or items after signing the contract. That comes down to each individual client.

We have some clients who do like to do upgrades as they are going, and then we also have many clients who won’t change a thing after the signing.


Visit our Display Centre at Shop 1, 240 Caroline Springs Boulevard, Caroline Springs to discuss your build options


Does a fixed price contract allow for variations to the building work during the construction process?

Yes it does, but this is where the extra prices may come about.


Am I locked into anything when signing a Preliminary Agreement?

No, you aren’t locked into anything when you sign a Preliminary Agreement.

A preliminary agreement is basically the client allowing the builder to act on their behalf to gather all the required information to deliver a fixed price for contract.

 

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