Building Contract - Misc. Registering Fee ???

[buzza1]

Due to work commitments, rather than going owner-builder, I need to hire a builder to build my extension to lock-up stage with me providing all the materials (due to my wife being in the trade and getting good rates on everything) and providing a plumber for roofing.

Builder says yes at a negotiated daily rate but wants to add a $5000 fee for "registering" the job under his name on top. The insurance is at my cost as well.

Essentially I am paying for the builder to put up a frame.

Is this common practice for a fee in this type of arrangement, and is it legal ???

[bitingmidge]

Essentially I am paying for the builder to put up a frame.

.... and to guarantee the work for it's lifetime under his licence.

In Qld, this would mean that for instance if the building was subject to any movement in the footings, leaks or termite attack in the following seven years, the builder would be called upon to fix it.

I reckon that sort of cost is pretty reasonable!

If the builder is just going to erect the frame, why don't you get your owner-builder's licence and subcontract the frame? That way you are taking responsiblity for any future problems.

Personally, I don't allow anyone to use my licence if I am not personally responsible for the whole project.

Note: Victorian legislation may be different, but that's my take from here.

Cheers,

P