Delays in the completion of contracts for reasons such as slow land development are giving home builders a chance to pass on rising costs.
Home builders are renegotiating contracts with customers as delays – particularly in the development of land earmarked for new housing – trigger sunset clauses and give builders the chance to claim back some of their escalating costs.
“It’s important that builders and their clients do look for opportunities to find solutions and appropriately manage these pressures,” Ms Wawn said. One industry source said renegotiated contracts had pushed up the price of a four- or five-bedroom home by about $35,000, for a build cost of $200,000. Another said that as contracts varied by state and type of build, price rises could range from $5000 to $70,000.
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