What's the Issue?

When engaging a builder to build you a new home or even renovate your existing home, there are generally two common issues which you as the owner may face when entering into building contracts. The first is that of delay by the builder and the second is that of defective building works.

Delays

Building contracts are regulated in Australia by the Domestic Building Contracts Act 1995 (the Act). The Act outlines the builder's obligations to you and these obligations are mirrored in the contract between yourself and the builder.

Section 32 of the Act provides that the builder must give an estimate not only of the time they reasonably expect construction to take, but also provide an estimated allowance for reasonable delays. This runs alongside their obligation under section 8 of the Act which provides that the builder promises to complete construction within the period specified by the contract.

Together, these provisions provide consumers with confidence that construction will be completed within the time specified by the builder whilst still providing the builder leeway for delays outside their control, such as bad weather and leave entitlements of their employees.

Defects

The Act also regulates the quality of construction and building works by providing a set of implied warranties for building works. Under Section 8 of the Act, every builder must:

• warrant that their work will be carried out in a proper workmanlike manner with reasonable care and skill
• make sure all works are in accordance with the plans and specifications in the contract
• ensure all goods and materials used are new (unless otherwise agreed with you)
• ensure all work is carried out in accordance with the regulatory requirements of the Building Act 1993 (generally, that is ensuring all the required notices and permits are obtained from the relevant authorities); and
• ensure that the home is fit for occupation (evidenced by the issuing of an Occupation Permit).

At the heart of it, these warranties provide that the builder will deliver to you a fully functioning, fully occupiable home within a reasonable timeframe.

Any Tips?

To keep the builder on track in their obligations to you, it is a good idea to:

• Make sure that the plans and specifications of your building contract are detailed and precise and set out exactly what you want the builder to do
• If you change or vary what you want the builder to do, note that this can impact on the timeframe in which construction will be completed
• Make sure every variation is recorded in writing and specifies any change to timeframes for completion
• If there are any defects with construction, you are entitled to require the builder to fix such defects, keeping in mind that time limits apply for giving the builder notice of defects.

How can Sharrock Pitman Legal help me?

We have helped many owners with their issues about building contracts. Call us today on 1300 205 506 for advice on your legal options.

The information contained in this article is intended to be of a general nature only and should not be relied upon as legal advice. Any legal matters should be discussed specifically with one of our lawyers.

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