HIA Building contract - clause 19 delays COVID

Hello, we are building in NSW with Masterton. We signed our contract in 2019 (pre COVID) with the HIA contract edition 8a. Clause 19 is delays and extensions of time and our building is claiming an extension of time under 19.1 (b) an act of God, fire, explosion, earthquake or civil commotion due to not being able to get trades people due to COVID in Sydney.
Specifically they are claiming civil commotion.

Anyone come across this? Got any suggestions as how to approach?

I think it is reasonable for them to claim some extension of time but this clause does not seem appropriate.

So who are you going to seek recourse from?
The Federal and State governments that have created this problem with the stimulus Home builders grant?
Prices have skyrocketed, trades and materials are in shortage, builders are forcing battlers to wait it out, while some will go bankrupt.... it's going to be a long painful wait for many. Goodluck

Check your contract. It probably says the builder needs to notify you in writing of the delay and specific reasons for it - at or just after the time of the delay. Eg timber not available so can't complete frame. They can't just blame covid or government incentives etc after the event as a catch all. When did they take control of your site? Site scrape? Whats the extension of time claimed worth in $?

Hi Helentres

This is currently a contentious issue that many projects are experiencing. It is costly to escalate contracts to dispute, especially against large builders such as Masterton. If you look online, you will identify that Masterton is litigious and they have their own in-house lawyers. If you are not wanting to spend a lot of money on costly litigation, then the better option might be to negotiate with Masterton to get certainty as to the completion date.


If you require advice on your question, then it may be best to consult with a building and construction lawyer in Sydney.

Cheers

John Dela Cruz

Regardless of what the contract says if the builder has delays because of events beyond builder's control it will be reasonable to allow extension of time, if not in contract then in common law.
What is the problem? If the builder has just cause and has properly articulated the claim then extension of time will follow.

Assume that there is a dispute and goes to VCAT. Vcat will make a decision that is fair taking account of all evidence and even may rectify the contract if it deems fit. Want to litigate? The price of the ticket is steep.