Hello all,
I am a consulating engineer in the commercial construction industry. We use AS 2124 for as contract conditions, which is a fair and balanced contract.
I have a real problem with the HIA standard contracts - it is too much in favour of the builder. I can't believe you have to pay 100% of the contract value at PC. In AS2124, we typically have a 5% retention until end of defect liability period (which in normally 12 months). How can you get a project builder to fix defects when he has been fully paid. Its crazy.
Don't get me started on the 12 week defects liability period - Surely this needs to be 12 months to cater for defects that only become apparant during Summer or Winter seasons.
When managing my strata, I changed the builder contract form the HIA contract to the AS 2124 contract. HE didn't hesitate, and I ended up getting a well run project, with the 5% retention there as a incentive for the builder to make sure defects were rectified.
Has anyone had the contract conditions changed? I am going to insist on this with PBs - If they want my business, it needs to be on fair terms. A good builder would have no problems with this. A builder who hesitates, is a builder who isn;t confident in delivering an acceptable building.
Your thoughts????