Browse Forums Building A New House 1 Mar 21, 2018 3:29 pm Hi Guys, I am in the process of building a new house. I am planning to hire services of an Independent Building Inspector for all the stages of the build and have advised of this to my builder. My builder is advising that it will take about 1 month for them to clear any defect list given to them by my building inspector at every stage. I asked the builder if they are building correctly then it should not take about a month to clear the defect list, however, the builder advises that its the admin side of things which are involved will take most of the time. They also point out that there is no qualification required to become an independent building inspector and anyone can be one so as a builder they might argue on some defect items if they deemed is picked up incorrectly. For me, this seems to be a scare tactic to not opt the services of an independent building inspector and makes me more determined to go for it. Give this situation, I got following questions - 1. What is builder's obligation to fix the defect list provided by the building inspector at every stage? Do they need to fix them all before moving to next stage? 2. Do I make the progress payment for the next stage even if the builder has not addressed all the items in the defect list for that particular stage or wait till everything is addressed? 3. If I hold the progress payment for the next stage until all the items in the defect list are addressed for the current stage then can the builder stop the works and charge 20% (as per the contract) interest on outstanding progress payment past 7 days since the invoice is issued? 4. If I make the progress payment for the next stage even though there are outstanding items in the defect list of the current stage then what obligation does the builder has to fix them, can the builder deny fixing them and move to the next stage and if yes then what are my rights? 5. As per my contract, it only mentions that I need to provide a signed defect list to the builder after my final inspection and they are obligated to fix them within 21 days of it. However, this might be too late if they have not addressed any outstanding issues say for e.g. from the slab stage To conclude, I would like to know what are my rights and builder's obligation in regards to the builder addressing all the items in the defect list from my building inspector at each stage and me holding of the progress payment until it's cleared? I will appreciate your in regards to the above queries. Thanks T Re: Independent Building Inspector Queries and My rights 3Mar 22, 2018 4:02 pm I'd suggest you speak to your solicitor about this, as the answers to these will depend on the terms of your specific contract and situation. As very general and non-specific advice, under typical (HIA/MBA) building contracts, the builder has no obligation to fix defects at each and every stage, and if you decide to delay a stage payment, then the builder is entitled to charge penalty interest and/or stop works as per the contract, regardless of defects. If you have strong evidence (backed up by your independent inspector) that the construction stage isn't substantively complete, then you might be able to push back. However, be aware that if you do so then (again, depending upon your specific circumstances) the builder might just go into formal dispute and shut the site down anyway (while you're paying rent or a second mortgage on top of the interest on the construction loan so far... unless the builder is in financial trouble, they're usually going to be in a better financial position to 'wait things out' than an individual client). Once the contract is signed your power to affect anything diminishes significantly, and in many respects you're very much at the mercy of the builder. This is why choosing your builder carefully, and getting independent legal advice BEFORE you sign a contract, is so important. Be especially wary of builders who pressure people into signing contracts 'on the day' without proper time to review and seek advice. All is not lost, though - forum contributor bashworth has some suggestions on his website about minimising consequences if you do decide to try delaying a progress payment. Basically, you want to maintain a cordial and constructive relationship with the builder, rather than a confrontational one, and compromise is likely to be the key to getting the best end result. I would send it to the certifier who is technically your representative and working on your behalf not the builder's 1 2264 There is a whole lot more to know than just the answers you seek but they are a good start. Overflow outlets have a mosquito proof mesh. These… 3 8419 The only thing to add to these comments is that where possible it's always good to try and work with people than just say "no" because you can. Having someone… 4 17130 |