Builder has set mediation with Master Builders GC. Any tips

Raecows · Aug 28, 2023 3:57 pm

We are in dispute over the final payment with our builder. They do not want to pay liquidated damages. As the build is 291 days over contract it is a large amount at $50 per day. Originally they requested $49k and we where happy to pay $35k. Now they have blown it out to $77k as they have added interest, delay costs and legal fees.

For more context, no commencement notice, no notice that they would not meet practical completion, no notice of a new practical completion date, or any variation documents have been provided to us throughout the course of the build. The only document we signed was the residential build contract. As the build went so far over contract we need those liquidated damages in order to recover our costs.

Just wondering if anyone has gone to Master Builders on the GC and gone through this mediation process before. I am stressed to the max about it. Are they fair or do they favour the builder?

Thank you.

Splashers · Aug 28, 2023 5:37 pm

Never personally been through the process but they will look at factual evidence not just conversations. You will need to have all emails, txt messages, dates, certain milestones (earthworks, slab poured etc) and a diary or calender with specific events or meetings. Take all copies of paperwork, contracts and any changes to them. Look at previous weather throughout the build as the builder always claims way more weather days than actually happen.
Be prepared, be professional and dont get into he said she said arguments as they will want evidence based arguements, Good Luck

building-expert · Aug 29, 2023 7:24 pm

What state are you in?

Raecows · Aug 30, 2023 5:52 am

building-expert

What state are you in?

Oops sorry. We are in QLD

building-expert · Aug 30, 2023 8:47 am

What does your contract say about dispute resolution?

Raecows · Aug 30, 2023 10:33 am

building-expert

What does your contract say about dispute resolution?

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building-expert · Aug 30, 2023 11:32 am

You will have to participate in dispute resolution firstly MBQ and then Commission. If not resolved then you can take action in the tribunal or the court.
The important thing to remember is that you don't have to agree to an outcome in dispute resolution if it is unsatisfactory to you but if there is chance to settle , then you should make a business decision.

In any case, liquidated damaged are a right under the contract and if the builder does not have valid extensions of time they may be applied.You have not posted it but your contract has extension of time protocol that builder must follow.

You need to have a good documentary file to assist your claim and that the builder has been late without proper justification.

Raecows · Aug 30, 2023 12:03 pm

building-expert

You will have to participate in dispute resolution firstly MBQ and then Commission. If not resolved then you can take action in the tribunal or the court.
The important thing to remember is that you don't have to agree to an outcome in dispute resolution if it is unsatisfactory to you but if there is chance to settle , then you should make a business decision.

In any case, liquidated damaged are a right under the contract and if the builder does not have valid extensions of time they may be applied.You have not posted it but your contract has extension of time protocol that builder must follow.

You need to have a good documentary file to assist your claim and that the builder has been late without proper justification.

Thank you so much. This has been very helpful. We definitely wish to settle and get these people out of our life.

They are trying to charge us interest on late progress payments but we have documented evidence that the builder always sent invoices earlier then they were due.

They are also trying to charge us $18k in delay costs and $10k in legal fees. The delay costs (extra toilet hire, admin, overheads, fuel, onsite management, structural steel costs as they changed from trusses to steel purlins (without our written consent) are the worry for me but from what I read, I believe they can only be charged on unforeseeable delays. All the delays they are claiming were foreseeable.

Anyway. Thank you for your help. It’s very much appreciated. I will ensure I have good documentation and pray for a settlement we can both agree on.