Stroud Homes Tamworth Fixed Price Contract

Explaining Fixed Price Contract

Building a new home is exciting, but it’s also one of the most costly decisions you will ever make. Therefore, it’s important to be able to budget for as much as you can before the build commences.

A fixed price contract is an agreement between the builder and a client in which the price will remain the same right through to the end of the project.

At Stroud Homes Tamworth, 100% fixed price quotes are guaranteed when you build your new home. Tamworth owner and builder Peter Verrier further explains Fixed Price Contracts and the processes around it.

Peter Verrier with client

Peter Verrier with happy customer Anne


Can you explain what the Preliminary Process and Preliminary Testing includes prior to signing the fixed price contract?

The preliminary process involves a few steps that we take to ensure that we can provide a fixed price:

  • The process starts with our sales team going through all of our inclusions. Then, an onsite evaluation of your block is completed, free of charge.
  • Following this, a quote is presented that specifies what is included. Once this has occurred the Preliminary Agreement is signed and a Preliminary fee is taken.
  • The full preliminary fee covers the preliminary testing; contours (slope of your block), soil type, wind ratings, and may uncover other issues that need to be investigated such as bush fire ratings, flood or acoustics.
  • The full preliminary fee also covers preliminary drawings of your home design, council pre-check and site plans. The fee is then deducted from the deposit amount at contract signing.

All of the above Preliminary items are required by banks and financial institutions to finalise approval.

Free site inspection


Are you up front with all fees and charges, and are the Prime Cost (PC) sums in your quote comparable with all quotes received?

We certainly are! We are honest and upfront with all costs that are associated with the build. PC Sum is an amount of money included in the contract to cover work or/and materials that have not been specifically detailed by the builder when providing the contract price.

Basically an estimated amount is included in the contract and is subject to change and most likely increases the price. At Stroud Homes Tamworth, we take the time to do our pricing correctly and ensure that everything that will be required for the build is included.

Unlike other builders, we don’t under price with the intent to increase it later, we give in-depth quotations. We encourage you to read through your building contract thoroughly and question any unknown prices or PC sums/items.

Any builder who is unwilling to take the time to get all of the information and pricing required may increase your pricing later. We would advise strongly against using a builder who takes this approach.


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

The only way that the price can change is if YOU upgrade something from the standard, or if YOU change something during the build.

floorplan


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

Of course! Changes or variations can be made during the build as stated in the contract.

However, it is important to know that these changes can be costly and we make every effort to get things right before starting the build.

Modified Montego

A modified Montego home design coming together


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

Yes they can! We carry out extensive testing – we don’t guess and then add on the cost later.

We take the time to get it right during the preliminary period so that we can keep your budget on track.

Siteworks are all individual, based on the land you are planning to build your house on and the costs associated with siteworks can vary significantly.

In fact, it is not uncommon for a sloped block to need $50,000 more in siteworks than a flatter block. Imagine finding out you need to pay an extra $50,000 AFTER you have signed your contract!

Tradie with money


Am I locked into anything when signing a Preliminary Agreement?

NO! A Preliminary Agreement is just that, preliminary. It just allows us to be able to carry out the preliminary tests and do our research in the initial stages so we can fit your budget and avoid any nasty surprises during the build.

If your circumstances change, all test results are yours to keep. At Stroud Homes Tamworth we believe what you see is what you get!

We have a fixed price contract so that there is no opportunity to increase the price at your expense. The paperwork is easy to read and understand so you can be confident you know exactly what you will be paying.

Stroud Homes documents

Peter Verrier
Peter Verrier

Talk to Peter about building your new home