HIA Contract - Contract Period Start Date? Help!

TaraD17 · Nov 23, 2011 12:37 pm

We have a contract period of 30 weeks to build our home. I was wanting to know when the 'contract period' commences?

The building started on May 5th this year, but our builders have told us that our contract didnt start until the 17th of May. So when did our contract period really start? The day they started building? As they told us when we met them on the 10th of May that the contract would start from that day (the 10th) since building had already commenced. Now they are saying the contract didnt start until the 17th May. Thoughts? We are very confused!

Our HIA contract states -
The building works must reach the stage of practical completetion no more than: 30 weeks after the contract period commences ( Clause 8 )

Clause 8
8.1 The builder is to commence the building works within 20 working days after the day that:
a) the builder recieves all necessary building permits and planning approvals for the building works to commence; or
b) the owner satisfies all of the requirements of clause 4, whichever is later.

8.2 The contract period commences on the date the builder is obliged to commence the building works under sub-clause 8.1.

(The builder may commence before the contract period commences)

chrisandkate · Nov 23, 2011 2:19 pm

So they say the contract didn't commence until 17th May but they actually started building on 5th May?

Perhaps they didn't have the permits until the 17th?

They could conceivably be digging out and laying drainage in place before they have the permit but it would be odd as they wouldn't have insurance coverage in that case.

Either way its not much of a difference, and its not as easy as you think to get compensation out of a builder. I assume this is why you are asking?

bashworth · Nov 23, 2011 3:09 pm

There are normally two periods in a HIA contract
A The contract period which starts when the contract is signed.
B The building period which commences when work on site starts.

The period between the start of the Contract and the Building period is the time during which building permits are obtained.

If Building Work started on 5th May my approach would be to send a FORMAL LETter (not a phone call or Email) to the builder stating "That as building work started on 5th May 2011 that date will be taken as the commencement date of the building period for the purposes of administering the contract"

dkp · Dec 05, 2011 9:12 am

As the contract states, the 30 weeks to complete the house are counted starting from 20 working days after the date all permits and approvals have been received.

It may be confusing but that's how it is: the contract period does not start when the works commences. It starts 20 days after all permits are obtained. This means the contract period should always start after the building works have begun.

DKP

Casa2 · Dec 05, 2011 11:42 am

Sounds like the builder has given himself (in the contract) a 4 weeks extension to the 30 week figure!

Jazzy4 · Dec 09, 2011 10:53 pm

Call the HIA and ask. I think you'll find that the contract starts the day your site cut is Started.

leighton · Oct 04, 2012 5:35 am

reckon DKP is right. read the contract. it says time starts later even if job starts earlier. that is what it says. leighton at clark new homes