Frustration with Builder building my house

I usually don’t post questions like this to public forums, but I read this forum whenever a good heading shows up, and usually find myself aligned with many of the views expressed. So figured I’d post this issue I am having with my house builder, maybe I am in the wrong and can’t see it.

I am building in Perth through what I was led to believe was one of the better builders. They have been in business for 40 years, surely that must account for something?

My first indication that I made the wrong choice was after putting my deposit down in mid June 2019 I was constantly having to chase the sales person about estimates for the changes we wanted to make to the house, his excuse about repeated delays was that management had higher priority clients. I can’t believe he said this to me, it still puts a sour taste in my mouth.

This cat and mouse went on for months trying to get contract papers and working drawings for finance approval. A few months later we saw our house laid out on the block in a cad drawing for the first time, not the sales person scrapbooking (literally uhu stick and scissors). Which was all wrong, we had chosen a larger block, and a house design that would give us the space to put a pool in. This was a hard requirement up front when we put the deposit down, that the backyard have ample space. But on the plans, the house was pushed all the way back… The response was, the house does not fit further forward (tapered corner block). So that night I spent hours and hours trying to shrink the house without compromising the living areas. I was almost ready to quit out of sheer anxiety and frustration, when I realised that the numbers didn't add up on the plans. In the morning, I spoke to the sales guy who initially didn't believe me, but after proving to him (simple maths) they came back with new drawings of the house pushed so far forward that I would not be able to fit a car on the driveway… another hard requirement… How does this even happen? I would assume CAD software auto calculates everything?, it's like the numbers were manually entered

I could go on and on with issues, like the tile sales people noticing our ensuite shower’s drain not under the shower. Or them coming back to me telling me I put light switches in the shower which is against regulations…. I am no architect, but I am pretty sure I would not have asked for a light switch in the shower.

Anyways, the slab got laid in February, and I am still waiting for completion. If the government didn’t extend the grants I would have missed out… I do appreciate the delays COVID has caused, and have been quick to approve their request to extend the build time. But a friend in the office started building a similar spec house in the same area after me, and they moved in a few months back… And seeing the speed other houses got completed on the street… It is frustrating to say the least.

But now we get to the current issue, which I am sure will not be the last. But it's the straw that has finally broken my back… A month or so back we were informed the tiles we had selected for the kitchen splashback were no longer available. We went to the listed tile suppliers, and none of them had what we wanted. So we ended up asking to replace that tile with black glass. They quoted $1040, I didn't question it and signed the variation.
They very nicely informed me that they would not charge me a $1000 variation fee… I don't know if that was a joke or not.
Now they have come back asking for either $800 or $1200 more to put that glass as replacement for the tile in the scullery (which is half the area, the $800 only gets it 30cm high, height wise that's ok, as that's what the tile was going to be).
I instantly replied and said, hold on, I already picked a replacement for the tile.

But they keep insisting that I need to pay again. Their argument is that on the contract, the tiles in the scullery are not associated with any selection. As far as I see it though, we sat with their consultant to make the selections, they are the experts, and we are paying them a lot of money to hold our hands through the process, so that all the details are taken care of, and nothing is missed. But obviously they failed us.

The scullery has the same benchtop, the same cupboards, why would the tile selected be any different? It's just common sense that it's all the same, it is part of the kitchen.

I would imagine they have some sort of QA process to make sure all selections, etc are done so that they have everything to complete construction, and this omission should have been picked up earlier… but alas from my experience, I believe their QA is just that, imaginary.

So essentially they are 100% at fault for not reviewing the completeness of the selections recorded by their consultant. And now they are penalising me, and charging me a premium at the same time.

ARggg, am I wrong to hold my ground on this?


*UPDATE:
Today I talked with the operations manager, which without a doubt, just soured my experience more. But with some good pointers from this forum, I asked them for a full breakdown of all the costs which I got, and I also got a few quotes to get it installed after.

The quotes I got were between $400 to $450 m2 supplied and installed. Also quotes for the kitchen splashback were on average $1440, which lines up almost perfectly with what I paid the builders, ($1040 + refund from tiles which they informed me today was $380).

The builders breakdown, basically said they undercharged me for the kitchen, which should have been $2215 (minus the $380). It was at this point that I realised, no matter what I say, they can just give me any number and without any prior quoted figures I have no recourse, lesson learned.

And the high cost for the scullery glass, is because they are charging me $935.48 m2 supplied and installed, a premium because it's a small job, and a $70 refund for the tiles. This extra cost for a small job was the penalty awarded to me for the missed selection slipping through the system.

End of the day, I decided to get my $70 refund and get it done afterwards, as it's just cheaper, and I can push this bitter feeling away sooner.

Just want to say thanks to everyone who responded, I am not a confrontational person, and really wasn't sure if I was just being a dick. Also thanks to some pointers, I was able to come to a decision that I was comfortable with, and quickly.

Thanks!

Comments

  • +3

    This situation sounds like incompetence multiplied by apathy.

    Looks like they underquoted you on the glass replacement.
    What I would consider is if that amount of money is worth the delay it would cause ? If yes then go for it, if not bite the bullet and pay it.

    • If the cost quoted was comparable to the kitchen splash back, which is more then 5x larger, I would have not questioned it. At this point though, due to the delays I had to extend my rental, and due to covid rental craziness, I had to extend my lease by 8 months, no one would consider 6. So the way I see it, I have 4 months I can wait. Just have to decide if it's worth the stress.

  • +1

    if your not happy with the glass splashback, why not do it after handover? which builder is this anyway?

    • If I believed they would refund me the full cost of the product and labour for not installing anything, then yes that would be the best compromise. But I know they would screw me on that, in the past when I have pulled major things out, the refund was almost negligible, but to add the smallest of things the costs have been at least an order of magnitude greater then what I expected.

  • +9

    I would have been looking to cancel my business after they told you that you weren't a priority and then couldn't even get your plans right.

    I haven't built a house but I've heard from colleagues that you get screwed around a lot by the bigger builders.

    • +2

      Yeah I would have pulled the pin after "months of cat and mouse".

    • +3

      same thing happened to me when i built one of my houses. i went with one of the bigger builders and they are too busy. they have too much business and can't keep up with everything. they just hire other companies anyways to do the different phases of there builds. they're nothing more then just the middle man.
      so when that house finished i went to to build another house and just made myself the middle man and contracted out each phase myself. it was done faster and a bigger savings.

  • +1

    They have been in business for 40 years, surely that must account for something?

    A business is only as good as the people you have to deal with.

    • Very wise words!

      • probably just one 70 year old builder who hasn't updated his web site in 15 years

  • +7

    do a service to the community and name and shame the builder..

    • +1

      In Perth there is only one builder that prominently puts 40 years on there signage.

  • +4

    Having worked in building previously, there's a few things that people need to be aware of:

    1. Sales people often get complaints from operations (i.e. estimators, drafters etc.) because they make changes to plans that don't work or aren't legal. Remember their main motivation is to get sales. They will say yes to anything because other departments down the line have to deal with all the broken promises and changes, not them.

    2. When the changes were made they should have gone to a sales technical drafting team which determine if your changes can be done based off the block and regulations. It does not sound like they have done this, causing problems down the line. Sales people should not be doing the final plans. If they are, usually it's a huge red flag because 90% of the time they do not have the required skills or knowledge to be able to do this.

    3. All the major residential builders often recruit from the same pool of staff. You get the impression that being with a builder with a long history means good quality. This is not the case because the people doing the work in the background just move around to different home builders. e.g. When Simmonds started becoming one of the main residential builders, a lot of their staff were ex-AV Jennings staff.

    4. If you ever feel uncomfortable with anything after the initial deposit and things don't seem to add up, pull out. It's not worth the headaches down the end. Something like 50% of people who provide initial deposits (around a 5k deposit) usually end up pulling out.

  • +2

    Frankly, there were a lot of red flags in your story. I get the feeling there were certain things you rushed/were rushed on in order to pick up the grant you referred to in your post.

    That said, you are where you are.

    This is the classic case of deciding whether or not this is the issue you want to "make an issue" of.

    Is a thousand-odd dollars worth quibbling over in the overall cost of the house? I'd put on a bit of turn about this, but ultimately this is a very minor cost variation.

    Is this "the straw that breaks the camel's back"? Maybe, but be aware that if you go nuclear you may end up with more problems (in terms of getting a house you can live in ASAP) than you are solving. It sucks, but especially through the lens of getting finished product, you often end up over a barrel when these sorts of things occur.

    • +1

      Yes you are dead right. We were in the process of saving up a deposit for a home. The government grants fast tracked that (federal and state), and we jumped in as early as we could. We were given assurances by the builder that they were the best situated to get our slab down in time, especially as we already had a titled block, and was very early in after the grants were announced.
      But we definitely felt the urgency to get the ball rolling. And early on I did want to pull the pin, but the prospect of not getting the grants, and having to delay plans to get into our own house… convinced me to persevere.

  • Overall, its seems poor but these are fairly typical issues in a build process and certainly the poor customer service has made it worse. I experienced similar issues where the house had to be pushed further back which decimated an already small yard and due to delays materials changed so new tiles and flooring had to be selected. Then further delays caused prices to go up which I had to battle tooth and nail to negotiate to reasonable amount. So although not a great experience but I think its just your typical issues found in building a house

  • +2

    I feel for you, as my sister in law is going through a similar problem in Perth with small builder. DNB.

    She was given a $55k variation cost to be paid and her build does not even have a slab down yet.

    She signed a fixed price contract and now a year on we are in this situation, she is asking for a break down of the $55k costs which once we asked they replied with a $30k and no paint variation.

    Still we are waiting for the full breakdown of the variation costs. And has been over the last couple of weeks. We are trying to keep track of emails and they have been delaying in responses an saying been sick etc.

    Is there a clause for builder to break contract when build is delayed?

    And no she is not paying the $55k or$30k.
    The house build cost was $225k.

    We are asking for lower as who would be able to pull that amount of money 💰?

    • I read your post, your sisters situation is much worse then mine. I wish her all the luck, can only also advise she seeks legal advice. The quick 55k to 30k does seem dubious…

    • +1

      I believe they call that the bait and switch. I would pull out and find someone else especially at that price point.

  • +2

    What does the contract say?
    What is stated on the drawings?

    I'm pretty black and white with these things.

    Tiles in contract, lets say, 5m2 @ $100/m2 supply and install = $500
    Glass splashback, 5m2 @ 150m2 supply and install $750

    Negative variation for $500, positive variation for $750. Ballance is $250.

    The builder has initiated the change, no 'fee for variation' should be applicable (Again, what does the contract state). Read the contract!

    Glass splashback is easy to complete after handover. If it's going to be a massive issue, get some quotes and pay the trade yourself.

    • That is their argument, the contract/drawings have tile marked in, but no tile selection marked against it. I never noticed it till now, honestly I would not even have known to look for it, I wanted the kitchen and scullery to be the same bench, tile and cabinetry. Which it is, except no selection was put on the tile. My argument is, I am paying them to hold my hand through the process, such that nothing is missed. They are the experts, not me. They should have picked up this omission a long time ago.

      The tiling in the scullery is 1.8m x 0.3m == 0.54m2, they want $800 for that, or $1200 to go 0.7m high. I am happy with 0.3m high as that's all I wanted the tiles to go to.

      Agree, it's probably easier to just install it after hand over. But after so many issues, I guess I am just wanting to express my frustration.

  • Who are you building with?

    What is your construction costs?

    Single or double story?

    • Single story, ~260K

  • +2

    We had a similar experience with Porter Davis. They made lots of mistakes. I guess we're all only human. The weird thing is, all the mistakes were in their favour. Including things like signing off on repairs that never took place, or agreeing - in writing - to remedy things and never doing it.

    My solicitor's advice was: they have half a billion dollar's annual turnover, and their legal expenses are tax deductible. Yours aren't.

  • +1

    I would call a few glass splashback installers and get some ball park per square meter quotes for your entire kitchen space including scullery. Then go back and negotiate based on those quotes and the variation you’ve already paid.

    I did this successfully when my builder tried to screw me on something similar.

    • That is a great idea, I will try this. Thanks!

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