Preparation of plan agreements

Most project builders will require a deposit from you before they do any preliminary works on your proposed new home. This is normally under the guise of a preparation of plans agreement. The agreement is basically a sub-contract and the money you pay is for the builder to draw plans, survey your block, get an engineers report and prepare your contract documents. On...ce the contract drawings and documents have been delivered to you for your perusal the next step if you are happy with the price, plans and contract is to enter into a formal building contract. Normally your deposit will go towards the contract value however if you fail to enter into a building contract your deposit will most likely be forfeited as the builder has spent the money preparing your contract documents. Most companies will also retain the survey and engineers information and retain the rights to the design which means you cannot go elsewhere and use the same information and design. That said if you are to pull out of the initial preparation of plans agreement and the builder has not drawn plans or ordered surveys and engineers reports you can often get a partial refund of your deposit. Builders will naturally be keen to say they have spent the money but they are obliged if requested by you to prove their costs to you and offer a breakdown of the costs for you. Also note that competing companies will sometimes be keen to snatch your business from a competitor and may be prepared to waive their preparation of plan agreement fee to get your business:

 

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