We have been waiting impatiently for the completion of our house since 18 months and will be claiming liquidated damages. We have a QBCC contract and it mentions $50 per day for each calendar day of delay in achieving practical completion.
Does this mean we can’t claim liquidated damage for the days between practical completion and handover?
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Browse Forums Building A New House  04 Jun 2014 818 NSW Gold Member Re: Liquidated damages 2Mar 09, 2023 8:33 am  onni.palasteWe have been waiting impatiently for the completion of our house since 18 months and will be claiming liquidated damages. We have a QBCC contract and it mentions $50 per day for each calendar day of delay in achieving practical completion. Does this mean we can’t claim liquidated damage for the days between practical completion and handover? correct. However its worth noting that practical completion is defined in the contract and not by the builder. Sometimes the builder will claim practical completion, you go and inspect and it doesn't meet the contractual definition of complete. be wary of that. There should be minimal time between PC and handover. Maybe 1-2 weeks. If there is several weeks of work after your final inspection, an argument could be had that PC was claimed prematurely. Ultimately it depends on what is required to be done. This happened to me and it wasn't a difficult argument to have. Got an extra grand out of them....more accurately, i paid them a grand less. Remember liquidated damages are subtracted from the final payment. Dont pay them and expect them to return the damages. Common mistake people make, then spend a year banging their head against a wall. 31 Jan 2020 467 Gold Member Re: Liquidated damages 6Mar 09, 2023 9:50 am Ask the builder to provide written details of their proposed final invoice after the liquidated damages amount has been offset - ideally before they issue this invoice. Check it carefully and check your contract for what notification, evidence and timings of these is required for weather related and other delays that reduce their amount payable. 04 Jun 2014 818 NSW Gold Member Re: Liquidated damages 8Mar 09, 2023 10:02 am Kippers01Ask the builder to provide written details of their proposed final invoice after the liquidated damages amount has been offset - ideally before they issue this invoice. Check it carefully and check your contract for what notification, evidence and timings of these is required for weather related and other delays that reduce their amount payable. the amount of LD cant be determined until the date of practical completion is known. SO any such figures are not going to be accurate or debatable untill then. 04 Jun 2014 818 NSW Gold Member Re: Liquidated damages 10Mar 09, 2023 10:59 am Mirrmu83what is practical completion in the contract? If you cant take what ive explaine in litterally hundreds of threads before about liquidated damages. Google it, mate. I did the first bit for you. The contracts are online. 04 Jun 2014 818 NSW Gold Member Re: Liquidated damages 13Mar 09, 2023 12:17 pm Kippers01PC is when construction is complete and house is able to be occupied. Some minor defects may remain but these dont stop occupation. no no, he wants the contractual definition. If hes going to be a sped about it, leave it be. We've answered the OPs question 18 Feb 2023 15 Junior Member Re: Liquidated damages 14Mar 09, 2023 1:33 pm ponzutwo onni.palasteWe have been waiting impatiently for the completion of our house since 18 months and will be claiming liquidated damages. We have a QBCC contract and it mentions $50 per day for each calendar day of delay in achieving practical completion. Does this mean we can’t claim liquidated damage for the days between practical completion and handover? correct. However its worth noting that practical completion is defined in the contract and not by the builder. Sometimes the builder will claim practical completion, you go and inspect and it doesn't meet the contractual definition of complete. be wary of that. There should be minimal time between PC and handover. Maybe 1-2 weeks. If there is several weeks of work after your final inspection, an argument could be had that PC was claimed prematurely. Ultimately it depends on what is required to be done. This happened to me and it wasn't a difficult argument to have. Got an extra grand out of them....more accurately, i paid them a grand less. Remember liquidated damages are subtracted from the final payment. Dont pay them and expect them to return the damages. Common mistake people make, then spend a year banging their head against a wall. Thanks. We will be careful not to accept PC prematurely until contracted work is completed. We will definitely deduct LD from the final invoice as it has totaled upto more than 15K until now. 18 Feb 2023 15 Junior Member 04 Jun 2014 818 NSW Gold Member Re: Liquidated damages 16Mar 09, 2023 1:40 pm onni.palaste ponzutwo onni.palasteWe have been waiting impatiently for the completion of our house since 18 months and will be claiming liquidated damages. We have a QBCC contract and it mentions $50 per day for each calendar day of delay in achieving practical completion. Does this mean we can’t claim liquidated damage for the days between practical completion and handover? correct. However its worth noting that practical completion is defined in the contract and not by the builder. Sometimes the builder will claim practical completion, you go and inspect and it doesn't meet the contractual definition of complete. be wary of that. There should be minimal time between PC and handover. Maybe 1-2 weeks. If there is several weeks of work after your final inspection, an argument could be had that PC was claimed prematurely. Ultimately it depends on what is required to be done. This happened to me and it wasn't a difficult argument to have. Got an extra grand out of them....more accurately, i paid them a grand less. Remember liquidated damages are subtracted from the final payment. Dont pay them and expect them to return the damages. Common mistake people make, then spend a year banging their head against a wall. Thanks. We will be careful not to accept PC prematurely until contracted work is completed. We will definitely deduct LD from the final invoice as it has totaled upto more than 15K until now. wait....15k? are you saying they're OVERDUE on the contractual completion date by 18 months? If so, i think LD might be the least of your worries. What stage is the house at? 18 Feb 2023 15 Junior Member Re: Liquidated damages 19Mar 09, 2023 1:51 pm ponzutwowait....15k? are you saying they're OVERDUE on the contractual completion date by 18 months? If so, i think LD might be the least of your worries. What stage is the house at? Its 10 months... $50 x 30 x 10 = roughly $15000 Its 95% complete.. Builder has been promising to have PC soon since ages.. hopefully we can have by the end of this month. It says calendar day so hoping I don't have to fight them with their possible argument saying business days.. lol 18 Feb 2023 15 Junior Member Re: Liquidated damages 20Mar 09, 2023 1:53 pm Mirrmu83the builder gave a Date for Practical Completion? Yes It worked for me in getting all non notified rain days removed from the builders claim, although the LDs was only $50/day 7 14248 On the day liquidated damages kicked in, I texted my SS "Good morning and happy "Today liquidated damages begins today day!" We had a little over 3 weeks claim and no… 1 9529 Let me restate key points properly Without seeing the specific contract, we cannot make assumptions about wet weather provisions. These must… 4 6907 |
