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As the owner wouldn’t have know how much was allowed for the kitchen in the...

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charles

Hi, Quick question. If you have a registered master builders contract which does not give any values for Prime cost sums or provisional sums. ie kitchen cost $xx. Could you argue this is a fixed price contract and if the owner hasn’t requested any changes to taps, bench tops etc ie the builder just used what he initially was going to use,then this cost can not be increased to the owner? As the owner wouldn’t have know how much was allowed for the kitchen in the first place? Just seems an easy option for builder to argue increase in costs to build.
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Mark Graham

Hi Charles I consulted for you! Here’s their response: Nobody, when signing a contract should allow sums that do not have a monetary value (i.e. Kitchen Cost $xx) to be included in a contract UNLESS the client is vary aware of this approach and had the full ramifications of such an item explained to them – i.e. Kitchen have a cost and somewhere along the line the client will have to pay for what ever is decided.Unfortunately if that is the bases of a contract then you are stuck with it but it tends to be an open chequebook for the Builder. Sometimes when generic contract forms are used, mistakes occur when some items that should be deleted remain in the contract. It’s not clear from your brief question if there’s any other details in the specification and on the drawing which could form the bases of establishing a cost for the kitchen, or if there had been any discussions between client and builder about the kitchen with evidence, such as an email, of what was agreed. Under a dispute it may be ruled that such additional evidence over-rides or negates the specification sum of no value which could be seen as a document error. Unfortunately some builders put unrealistically low “sums” in for items like Kitchens that result in quite horrific legally claimable price increases for the actual final installation. It is also an area where clients should understand the consequences of PC and Provisional sums and be alert to their nominated value. This is especially important when comparing overall prices from two or more builders when there can be significant variances in such sums nominated by the different Builders. Best Practise is for the Architect/Designer to nominate a realistic sum in the specification that is common to all builders. Cheers Mark G
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