Apr 13, 2007 11:25 am
We're coming up on the finish date for our build and it doesn't look like it will be finished on time.
A little background: We finalised the contract early last year and it took council a couple of months to give us the final approvals. The builder poured the slab on 11/08/2006. The contract states that the building must be complete 9 months after the slab has been poured. This makes the completion date 11/05/2007 and at the current rate I can't see this being finished. The gyprock is on site and they started the insulation last week, got half way through and nothing since. This is been the case the whole way through. The work is very sporadic, it will be all hands on deck for a couple of weeks then nothing for a couple of weeks. So they've got all the plastering, 2nd fixing, kitchen and bathrooms and outside painting (we're painting the inside) to be completed.
The contract doesn't list any penalties for the builder, it just states that it must be finished on time. Where do we stand in claiming some compensation if/when the building isn't finished on time?
Re: Late penalties4
Apr 13, 2007 3:31 pm
I think you are up sh*t creek without a paddle in a barbed wire canoe.
Unless it states the penalty there is probably none.
The contract also has wet days etc which they will no doubt use to defend their position. (If you live in Melbourne thats about 2 days in the last 200 )
I hope there is something you can do though.
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Re: Late penalties5
Apr 13, 2007 4:53 pm
The HIA contract may not actually call it liquidated damages. It may have another name along the lines of payments for late completion.
If your HIA contact doesn't have the clause, you may want to see if there is a blank version on the web somewhere.
Re: Late penalties6
Apr 13, 2007 4:57 pm
Hi Matt, it's our builder is a small project builder and we're in SA. They mainly do development i.e. buy large tracts of land develop and build then sell them off. We feel that our place has been a bit of a side project and not a real priority for them.
Rain etc. isn't really an excuse with the drought like conditions here in SA and with the roof being on since late last year there's no excuses really.
The only reason we've held them up on occasion is when we've had to do last minute selections. But as far as I'm concerned, it's not our fault if they don't tell us we need to select some items until after they've started building. All selections should have been done before the slab was poured.
I'll ring the builder on Monday and see if I can a) get them to hurry the hell up or b) get some compensation.
It's a delicate situation because we want to get in there ASAP but we don't want them to rush it and do a crap job (very happy with the quality so far).
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building-expertUnfair Contract Terms- ACCC new penaltiesUnfair Contract Terms- ACCC new penalties
I believe that liquidated damaged should be amount of actual loss to the owner from the delays. The issue in all of this is building industry lobbying and contributing to…