Fixed Price Contracts

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Fixed Price Contracts

What you need to know about Fixed Price Contracts

When building a new home with Stroud Homes Ipswich, the team is doing everything possible to research your land to make sure that all costs are covered in the Fixed Price Contract.

A part of this process is the preliminary testing of the land, which is made beforehand to ensure there will be no surprises in the final cost.

We asked Stroud Homes Ipswich General Manager, Tom Sachs, what more you need to know about Fixed Price Contracts when building with Stroud Homes Ipswich.

Preliminary agreement

“When signing a preliminary agreement, you are not locked in to anything,” Tom explains.

The preliminary agreement includes testing the block to find any building costs, such as those due to soil properties, contours of the land, and any build requirements as stipulated by council or the development.

The preliminary agreement is a separate document to the contract, and it allows the builder to start the soil testing processes and organise your design and colour appointments.

“We get you to select all of your colours prior to signing the contract so you know exactly what you are getting and for how much,” Tom says.

“Our preliminary agreement covers everything we need to do to get you to a fixed price contact.”


Provisional sums

Tom says Stroud Homes is always trying to give clients the best estimate to what cost may be, but in rare cases a provisional sum needs to be added to the contract.

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.

Stroud Homes Ipswich also has a money back guarantee. This means you will get your money back  if you feel like you haven’t been serviced properly throughout the preliminary process.

Additional expenses

Tom explains, however, there are some cases where additional expenses need to be added. An example would be including a sum for rock breaking if there’s a chance of encountering shallow rock underground during slab excavations.

“Until we start moving soil around, it is impossible to know exactly how much rock there is,” Tom says.

“We will always provide our best estimate and will credit back any additional unspent funds,”

“We won’t provide provisional sum amounts for items where we know exactly what the cost will be, for example, floor coverings and electrical. These will be fully fixed price as part of your contract.”

Would you like to talk to Tom about building a home in the Ipswich area?

Give the team a call on 07 3450 9857 or 0447 787 683.

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Peter Woolgar
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