Browse Forums Building A New House Re: Contracts with your builder - get a lawyer? 2Jun 23, 2014 6:55 am BLOG: http://www.ourphoenix38.blogspot.com.au H1 THREAD: viewtopic.php?f=31&t=70454 Re: Contracts with your builder - get a lawyer? 5Jun 23, 2014 11:23 am 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: Contracts with your builder - get a lawyer? 8Jun 23, 2014 10:59 pm RedHotMike With regards to LD's - be careful - it's a double edged sword. I will apply LD's on late payment for any customer insisting on LD's regarding delivery performance. It goes both ways. Also beware that a builder can legitimately claim an extension for delays beyond their control that could not be reasonably foreseen (such as significant inclement weather or materials being not available/delayed). Note that things reasonably foreseen (such as public holidays etc) are not grounds for an extension. Suspension of works due to the client not paying stage payments on time and delays caused there in will stand up as delays. That is, not only the days of delay in payment but extra time to reschedule works to commence (which could be weeks!). There are many ways that a builder can wiggle out of LD's if he is organized. Liquidated damages are not a "two edged sword" nor can they "go both ways". Yes a builder is within his rights to contractually apply late payment penalties in a contract but it is not a situation of "well if you insist on liquidated damages then I'm going to do this to you". That's ridiculous. A builder needs to schedule his program of works and allow a suitable contract period that is inclusive of all foreseeable delay days. That's his job and if he can't work out how to determine how long his build will take then he shouldn't be in business. Liquidated damages shouldn't bother him because he's able to build within the timeframe he's agreed upon in the contract, right? If he screws this up the client needs financial protection for an expensive project that has run over the time agreed to legally by both parties. Otherwise what's to stop a builder agreeing to a 12 month build and completing it in 24 months - 12 months of financial hardship for a client who has not budgeted for the extra year of rent/two mortgages etc? Liquidated damages are there to provide a measure of protection for the client. Too many builders try to browbeat clients into a ridiculously low figure or veiled threats like the above which is unnecessary. If you don't think you can build it in the agreed period then don't sign a contract saying you will. And whilst the builder can extend the contract period through various unforeseen events, it is important to remember that the client is within his rights to challenge any request for an extension. Completed a knock down and rebuild in northern Melbourne. Handover completed 27/09/2013 and now moved in. Mofflepop, Are you building around Qld Manly? Building & Legal is a partnership between a construction guy and a construction Lawyer. Construction: we have… 9 25594 MBA and HIA both have sub contract agreements, check them out 2 7327 Industry type domestic contracts are prepared by industry bodies for the benefit of the builders. This means that if you are the owner watch out. One of the points is… 0 3235 |