Problem
1. $350,000 total construction costs / 5% Deposit
2. A typical house - single storey, brick veneer home of 200m2, built on a concrete slab with a tiled roof and one wood heater
3. In-ground swimming pool
4. Time for completion references : Date for Commencement should be 30 days from fictional contract sign date
5. The vacant block has been purchased by the owner and not part of an estate development
6. The location is 22 high Street, Collingwood 3066
7. Building permit has been issued
8. The land is in an area requiring termite protection
9. Perimeter fence required for street face only
10. Client is John Smith:
a. 1 Jones Street, Collingwood, VIC, 3066
b. Preferred communication is email.
11. You are the builder - use an alias. All pages must have fictional owner/ builder details, signatures and initials where required.
12. Prime Cost items:
• Dishwasher 7 star - $1800.00
• Vanity unit - $2500.00
• Provisional Sum allowance*:
• Rock Removal - $4500.00
• Excess Soil Removal - $2500.00
*The client is questioning the PS items of rock removal and excess soil - they don't understand why this is not part of the base cost and want these items removed from the contract. They have indicated they will not sign until this is resolved.
1. Draft a letter to the client regarding the PS items. Your letter must.
2. Explain what PS items are and why it is their best interest they are listed this way.
3. An appropriate offer/adjustment to ensure they will be comfortable with the contract.