Reports are circulating that people building their first home are being stung with extra costs months after signing their contract. The builders are arguing an increased costs of labour and materials as the reason for asking for up to five per cent more.

Speaking with Oliver Peterson, Perth LIVE listener Brianna Woods said she signed the contract in August 2020 but she has just been told the price of her build with BGC’s Commodore Homes is going to increase by nearly $6000.

“They are saying it’s an increase in labour and cost of materials.

“There’s a clause that says if work hasn’t begun within 45 days, there’s a right for them to increase it [build price].”

Ms Woods said her block of land has been sitting for empty for months. She feels builders are using the timing of receiving the first home owners grant to hit up clients for more money.

“I think they are making all these calls to people knowing they have just received these grants and we have money available to give to them,” Ms Woods said.

When Ms Woods argued the price increase she said she was told she can use the money from her grant.

“They’re straight up assuming you’re going to pay it from the grants anyway,” she said.

Listener Jamie Thorpe also reported the same issue happening to his son who is building with BGC’s HomeStart.

“They know he got approval for the grants,” said Mr Thorpe.

“To say ‘by the way you can find it out of the grants.’ What right have they got?”

Press PLAY to hear Brianna and Jamie share their stories:

BGC has been contacted for comment