I’m going to have to seek legal advice on the matters below. In the mean time I wondered if anyone else is familiar with these subjects.
I am sharing the build with a builder. I am also financing 70% of the build myself. And have just received the builder’s contract.
[1]The builder has requested I provide a Guarantor (see image). Fifteen years ago when I last built a house the builder didn’t require this.
Is this standard practice these days? I cant imagine my bank wanting to indemnify the builder, nor had I factored in the need for a third party to go Guarantor.
Do insurance companies typically provide a Guarantor service? [2]The builder wants the right to place a caveat over the property if I withhold a payment (see image). Which is reasonable if I’m in the wrong, but what if I’m in the right?
Can they still place a caveat over the property?[3]The builder wants me to pay them if they go over their anticipated build period (see image).
If, hypothetically, bad weather takes the site out of action for say 4 weeks, I have to pay the builder a fee if they go over their anticipated build period.
If, hypothetically, the builder’s supplier runs out of stock and the build is delayed, I have to pay the builder a fee if they go over their anticipated build period.
"anything done or not done by the Owner"......
Is paying the builder if they go over their anticipated build period standard practice these days?
Don't know anything about the guarantor questions but. . .
[2]My reading of Clause 29 says the covenant is only in respect to the contract (that is it only applies if you are in the wrong, with the contract being the test)
[3] My reading of Clause 32.3 means you only pay for delays if you or a contractor employed by you (rather than the builder, or the builders contractor) delays the completion. {For instance if you want to employ the electrician separately and he takes an extra week for the rough in} I suspect bad weather delays will be dealt with in another part of the contract.
I am not surprised at this clause as tradesmen will always give first preference to regular clients rather than one off customers like yourself so there is a real risk of the builder being held up.
Thanks for the reply bashworth.
re C32.3, the all important words are "anything done or not done by the Owner"......
which is all inclusive including weather
re C29, I suspect this is the builder giving themself the right to apply a caveat even if they are in the wrong but payment is in dispute
Don't know anything about the guarantor questions but. . .
[2]My reading of Clause 29 says the covenant is only in respect to the contract (that is it only applies if you are in the wrong, with the contract being the test)
[3] My reading of Clause 32.3 means you only pay for delays if you or a contractor employed by you (rather than the builder, or the builders contractor) delays the completion. {For instance if you want to employ the electrician separately and he takes an extra week for the rough in} I suspect bad weather delays will be dealt with in another part of the contract.
I am not surprised at this clause as tradesmen will always give first preference to regular clients rather than one off customers like yourself so there is a real risk of the builder being held up.