Browse Forums Building A New House 1 May 09, 2012 8:35 pm Hi We have been building a house for the last 2.5 years (!). Lockup stage was completed last year and currently 60% work is done of the fixing stage and builder stopped working due to funding issue. Bearing in mind that the builder may decide to declare bankruptcy anytime; as a consumer what should I do, cancel the contract? if so, what are the financial and legal implications? or wait for him to go bankrupt and deal with the insurance. Any advice regarding this dire situation will be highly appreciated. Regards Re: Advice on cancelling building contract 2May 09, 2012 10:06 pm Read your contract carefully most of the information should be there. Normally you should give notice of an intention to terminate the contract ,with a date by which you expect action, giving the builder the opportunity to get moving. As far as the builder actually going under there is some more info at http://www.anewhouse.com.au/?p=1526 The Harder You Try - the Luckier You Get ! Web site http://www.anewhouse.com.au Informative, Amusing, and Opinionated Blog - Over 600 posts on all aspects of building a new house. Re: Advice on cancelling building contract 3May 09, 2012 10:16 pm Step one, go and get professional advice straight away. Step two see step one @builderforlife Building inspector and passionate about construction When you need an expert to take a look. Re: Advice on cancelling building contract 5May 13, 2012 12:07 pm Thanks guys, I have already sought help from solicitor. Could someone please let me know what would be the deal with the builders standard 7 years structural warranty if i cancel the contract? Re: Advice on cancelling building contract 6May 13, 2012 6:18 pm In Victoria there is statutory right to end building contract (Domestic Building Contracts Act 1995) if the builder has exceeded construction time by more than one and a half times of the original time (assuming you have not delayed the works) . Warranty remains for the work done by the builder. Foremost Building Expert in Australia,assisting with building problems/disputes, building stage inspections,pre-contract review advice for peace of mind 200 blogs http://www.buildingexpert.net.au/blog Re: Advice on cancelling building contract 7May 13, 2012 6:34 pm I would think as much as the builder is responsible for his work you could quickly end up with builder 1 saying what he did was right, it must be builder 2 that caused the problem, similarly builder 2 will blame builder 1! You will have to consider your solicitors advice and weigh up the pros and cons 2 You talk about deletions, are they variations or PS and PC adjustments? pleas list them 1 16557 There is no reason why building contract reconciliation cannot be done prior to handover, if the builder won't do it get someone to do it for you. Why would you pay for… 3 6687 I've decided, after a period of confusion (my building broker told me it's probably not worth it to use a lawyer, but others have said it is a must) that I definitely will… 7 27953 |