We are the Building and Construction Law Specialists
Phone: (02) 9689 3992
Time Means Money
There is an old adage that "Time means money". Nowhere is it more true than in the context of a building contract. The owners have invested their life savings in the property and are paying interest on the loans they had to undertake to be able to fund the building project. The builder has to pay rental for the hire of temporary facilities such as safety fencing, portable toilets, security guards, temporary electrical boards and has to pay for the downtime of cranes and other machines and their operators.
Some delays, such as bad weather, are no one's fault and the contract period should be extended without penalty to the extent that the works are delayed.
However, if you are an owner you should have a liquidated damages clause inserted into the contract which is fair and reasonable and covers your prospective losses arising from a delay caused by an act or omission of the builder.
Similarly, if you are a builder you should have a delay costs clause inserted into the contract which is fair and reasonable and covers your prospective losses arising from a delay caused by an act or omission of the owner.
Some delays, such as bad weather, are no one's fault and the contract period should be extended without penalty to the extent that the works are delayed.
However, if you are an owner you should have a liquidated damages clause inserted into the contract which is fair and reasonable and covers your prospective losses arising from a delay caused by an act or omission of the builder.
Similarly, if you are a builder you should have a delay costs clause inserted into the contract which is fair and reasonable and covers your prospective losses arising from a delay caused by an act or omission of the owner.
If you'd like help in negotiating your home building contract, you can contact us through the button on the bottom right or contact Stefanie Dunnicliff directly by email at sdunnicliff@petermerity.com.au or by ringing (02) 9689 3992.
Contact Us
