Zuccala Homes

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Why Zuccala Homes uses a fixed price domestic building contract?

In Victoria there are two common types of domestic building contracts:

  1. A fixed price contract
  2. A cost plus contract

At Zuccala Homes we use fixed price contracts because they are transparent and give the customer piece of mind by clearly showing the cost to build their home.

Fixed-price contracts are contracts where the price is a fixed lump sum that covers the labour and materials required to complete the scope of works.

The contract price can be still varied where there is a request for a variation to the contract scope of works or where prime costs or provisional sums are included in the contract.

A Prime Cost item is a dollar allowance used in the building contract where the customer is unable to select particular items prior to signing the contract and may include items such as   appliances, sinks, taps etc.

A Provisional Sum item is an allowance that the builder has made to complete a task under the contract where the actual total amount cannot be determined until the work is complete. In both cases an estimate amount is included in the contract and once the items are selected or the works are completed a variation is prepared for the difference between the amount allowed in the contract and the actual cost, this can be a credit or a charge.

Zuccala Homes prefers to minimise the use inclusion of Prime Cost and Provisional Sum Items and recommends wherever possible the customer selects all there items prior contract signing therefore giving them piece of mind.

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