Building A New House
Jun 04, 2014 6:03 pm
The builder we work with in Adelaide is not keen at all to include a liquidated damages clause to the contract.
Is this quite common? Anyone else tried and failed at this? Is there something else we can do at this stage? Should we request a formal amendment and ask for a formal refusal – or does it not matter?
We have been happy thus far with everything else and I am conscious of damaging the relationship if we push too hard. Hearing from others, it seems even if they put in a clause, most builders find a way not to pay anyhow.
Would appreciate your opinions and experience as this is stressing us out, thanks.
Re: Builder won't include LIQUIDATED DAMAGES CLAUSE, what no2
Jun 04, 2014 6:48 pm
Liquidated damages are common inclusion in standard building contract. The fact that builder won't commit, raises question marks about his confidence to deliver on time.
You need to assess what impact will be if the builder is seriously late.
Even if there are no liquidated damages you still have a claim under common law for damages for late completion however you must be able to prove it as opposed to agreed deduction/ week from contract.
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Re: Builder won't include LIQUIDATED DAMAGES CLAUSE, what no3
Jun 04, 2014 9:18 pm
That seems d0dgy. If you're confident you can complete the house within the nominated time frame then you shouldn't be worried about the clause because it will never happen. It's probably that they know they can't but don't want to extend the time in the contract in case you walk because it's too long. Protect yourself, don't sign it without the clause. Be prepared to walk because that's the only time you have any power.
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