Browse Forums Building A New House 1 Jun 25, 2010 7:57 pm Hi, The expected house completion date for our house is 1 July. However, due to some issues about the incorrect pantry door, it will be delayed in another 1-2 weeks. We have asked our CSC about the delay penalty. She explained to us that this is calculated on the day of settlement and from the amount of days in the HIA Contract versus actual, plus any delay days that have been claimed. And the delays days are days that are claimed by way of delay, these can be anything from material delays, weather delays etc….They do not come at a cost as such, they just add days on to the contract days specified. In my understanding, that means the builder can have any excuses not to pay the penalty for us. Am I right? Hope you guys can help me. Thank you so much in advance. Regards, Kin Metricon Amira Re: Penalty for the delayed house completion 3Jun 25, 2010 10:17 pm It depends on whether the delay was unavoidable on the builders behalf... Deemaree Kyndylan Capers: viewtopic.php?f=36&t=46852 My blog: http://www.sufficientlysufficient.blogspot.com/ Re: Penalty for the delayed house completion 4Jun 25, 2010 10:28 pm If our builder wants to claim a delay day, they have to quantify it and write to us - they then vary the amount of days in the contract. Has this happened to you? If not, I am not sure how they can talk about delay days now..... Re: Penalty for the delayed house completion 5Jun 25, 2010 10:50 pm buildinginjindalee If our builder wants to claim a delay day, they have to quantify it and write to us - they then vary the amount of days in the contract. Has this happened to you? If not, I am not sure how they can talk about delay days now..... According to our HIA contract, it said that the house should be completed in 150 days.....our site start is on 1 Feb so it should be completed by 1 July.....but as we observed, we dun think it can be completed by that date..... Metricon Amira Re: Penalty for the delayed house completion 6Jun 25, 2010 11:14 pm Unless you have written a penalty into the contract should they not finish by the completion day you have no chance. This is what we have been told by our parents builder. In additon if they can prove weather was an impeding factor or any other millions of things that cause delay ... it just gets added to the day. Easier to work with them, gently coaxing a finish as opposed to going in hard line. My folks found out the hard way! Re: Penalty for the delayed house completion 7Jun 26, 2010 8:12 am We had a six week delay for our bricks, as a result of the Boral plant being damaged in the Melbourne storms we had a few months ago, so as it was out of our builders control, the extra six weeks were added to our contract. Our build time is 270 days, which allows for poor weather conditions and also holidays. From what i gather, any situation out of your builders control, will also add to your contract date, but i'm sure that varies between the builders. Dear J.K. Rowling, Your books are entirely unrealistic. I mean, a ginger kid with two friends? Sincerely, Anonymous Re: Penalty for the delayed house completion 8Jun 26, 2010 11:28 am You'll have the standard $250 per week liquidated damages clause in your contract, and if your build runs over the specified contract time, then they will pay. If the contract says 150 days, the only other thing to consider is delays outside the builder's control, like the one the Little Misses mentioned, which will be allowed for somewhere in the contract. Our contract allowed 167 days to complete our house and it ran a long way over for many reasons - all of them avoidable if the trades had been on their game. We were paid liquidated damages for every single day past Day 167 with no arguments at all (a total of over $4000). If you're entitled to any payment, I'm quite sure PD will pay you. kayandandy Unless you have written a penalty into the contract should they not finish by the completion day you have no chance. Things are a lot different in Vic - thank goodness. Re: Penalty for the delayed house completion 9Jun 26, 2010 10:41 pm kek You'll have the standard $250 per week liquidated damages clause in your contract, and if your build runs over the specified contract time, then they will pay. If the contract says 150 days, the only other thing to consider is delays outside the builder's control, like the one the Little Misses mentioned, which will be allowed for somewhere in the contract. Our contract allowed 167 days to complete our house and it ran a long way over for many reasons - all of them avoidable if the trades had been on their game. We were paid liquidated damages for every single day past Day 167 with no arguments at all (a total of over $4000). If you're entitled to any payment, I'm quite sure PD will pay you. kayandandy Unless you have written a penalty into the contract should they not finish by the completion day you have no chance. Things are a lot different in Vic - thank goodness. Thanks kek, you make me feel better Thanks for everyone's advice as well Regards, Kin Metricon Amira Re: Penalty for the delayed house completion 10Jun 26, 2010 11:09 pm What about the letter of Practical completion? Our contract (ever so unclearly) says that once we receive it, that's it (I gather it means no more fear for them of the liq. damages) !?!? Is that right? Is the 'Letter of Practical completion' the completion?? My signature is distracting people from my wise posts ... Re: Penalty for the delayed house completion 11Jun 27, 2010 2:33 pm Lex What about the letter of Practical completion? Our contract (ever so unclearly) says that once we receive it, that's it (I gather it means no more fear for them of the liq. damages) !?!? Is that right? Is the 'Letter of Practical completion' the completion?? I would think you are right. Letter of Practical completion should be issued after practical inspection as I think... Metricon Amira Re: Penalty for the delayed house completion 12Jul 02, 2010 8:47 am Kikin, you've lost me ... what do you mean? You think I am right in thinking that issuing the 'Letter of Practical completion' is the practical completion itself? But then you say "Letter of Practical completion should be issued after practical inspection as I think..." - which is directly opposite to the first comment? Someone mentioned that liquidated damages do not stop at the "builder's so-called practical completion". Is this correct? Or, does simply issuing the letter completely protects the builder from any potential claims for liquidated damages ?? Has anyone had any experience with this? My signature is distracting people from my wise posts ... Re: Penalty for the delayed house completion 13Jul 02, 2010 8:47 pm Firstly, if the builder claims delays you can challenge them. If you don't think a delay is not beyond the builders control then tell them so. If you don't respond, you are assumed to accept the delay. Secondly, don't worry if there is no liquidated damages clause in your contract. The contract will state a completion date and if the builder goes over that date, they are in breach of contract. You are then entitled to damages. This would be the amount the house you are building could be rented out for. Unfortunately you'll have to go to court to get the money out of the builder. Demolition August 2009, Construction Started September 2009, Completed December 2010 Re: Penalty for the delayed house completion 14Jul 03, 2010 8:56 am Errrr ... I don't think our contract states a completion date , just the overall duration from the start (and I forgot what is considered the "start"), which doesn't help much since they can add the 5 weeks for Xmass and "rain days" - which is almost as long as a piece of string (I think it depends on which BOM data they look at). My signature is distracting people from my wise posts ... Re: Penalty for the delayed house completion 15Jul 03, 2010 10:29 am Overall duration from start is the same as completion date. Also, how many rain days have been claimed. I would dispute any claims that are more than 2 months old. Any BOM data that shows 2 mm or less of rainina day would not stop building wors. There's probably a formal definition of how much rain is considered a no work day. Demolition August 2009, Construction Started September 2009, Completed December 2010 Re: Penalty for the delayed house completion 16Jul 03, 2010 10:53 am Casa2 Overall duration from start is the same as completion date. Also, how many rain days have been claimed. I would dispute any claims that are more than 2 months old. Any BOM data that shows 2 mm or less of rainina day would not stop building wors. There's probably a formal definition of how much rain is considered a no work day. So, if I just add our x weeks contract period from the "contract signing date" + 5 weeks, that should give me the completion date? So far zero rainy days claimed. Perhaps they are waiting for us to take the first step and ask why are they over the contract (if they are - we can't know as we don't know how many rainy days they would claim! ). What do you mean "would dispute any claims that are more than 2 months old"? Re. the definition of rainy days - someone told me that in practice they simply look at any rain at all (incl. 1mm), but it's unclear about "where" - how refined (or not at all) is "the area" they are looking at?! My signature is distracting people from my wise posts ... Re: Penalty for the delayed house completion 17Jul 03, 2010 2:19 pm Lex Casa2 Overall duration from start is the same as completion date. Also, how many rain days have been claimed. I would dispute any claims that are more than 2 months old. Any BOM data that shows 2 mm or less of rainina day would not stop building wors. There's probably a formal definition of how much rain is considered a no work day. So, if I just add our x weeks contract period from the "contract signing date" + 5 weeks, that should give me the completion date? Yes So far zero rainy days claimed. Perhaps they are waiting for us to take the first step and ask why are they over the contract (if they are - we can't know as we don't know how many rainy days they would claim! ). What do you mean "would dispute any claims that are more than 2 months old"? All claims for raindays are request. You can dispute them if you think they are wrong. Re. the definition of rainy days - someone told me that in practice they simply look at any rain at all (incl. 1mm), but it's unclear about "where" - how refined (or not at all) is "the area" they are looking at?! Normally there would be about 20 rain affected days in a year. If you alow 1 mm anywhere in the city you live in this would easily multiply to a much bigger number. Demolition August 2009, Construction Started September 2009, Completed December 2010 Re: Penalty for the delayed house completion 18Jul 03, 2010 3:50 pm I dunno Lex... things are so different in NSW - you guys really seem to get screwed by your building contracts. I don't even know what a letter of practical completion is. We're covered for liquidated damages right up until handover. "Practical completion" stage can be several weeks prior. Re: Penalty for the delayed house completion 19Jul 03, 2010 9:27 pm Yep, I noticed the screw-up too, and on quite a few things With my contract, it seems like the handover has nothing to do with LDs - it's when they issue The Letter - it seems that the clock stops then My signature is distracting people from my wise posts ... Re: Penalty for the delayed house completion 20Jul 04, 2010 9:07 pm A rain day is where rain has affected a period of 4 hours or more during work hours. A heat delay is where the temperature has risen to 35 degrees or more for a period of 4 hours or more. Feel free to challenge. Our builder has claimed heat days that saw a top of 32 degrees and rain days where it did not rain at all. Go to the BOM web sie and keep records (screen shots). and dispute where nescessary. Like I said the Occupancy Certificate is not the tollgate that marks the completion of the house. 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