Generally when a homeowner engages a builder to either construct or renovate their property, they'll be required to enter into a domestic building contract. That contract is usually provided by the builder, and often homeowners don't understand all of the obligations that are imposed upon them before signing the contract.
As a result of either party not understanding all of the obligations imposed upon them under the contract, we often see disputes arise throughout the construction period or after the construction period has concluded.
Watch Rachael McKendrick discuss this issue. Rachael has advised business owners, builders, tradespersons and tenants of property who are involved in a dispute. The disputes are often due to contracts being poorly written, verbal in nature or because of an unpaid debt. She has experience in resolving these issues quickly and without fuss.
One common issue that we see arise throughout the course of a build relates to cost escalation clauses. Often owners don't understand that notwithstanding they've entered into a lump sum building contract, prime cost items and provisional sums can actually increase the contract price.
Another issue that we often see between builders and owners in relation to domestic building work is variations that have been undertaken throughout the course of the build. Generally contracts mandate that variations are in writing and signed by the parties. However, this isn't always the case, and often they're just oral agreements between the parties on site.
Often when a client seeks our advice in relation to a domestic building contract, whether it be the builder or the owner, they've already signed a contract and the build is already underway.
If an owner is considering entering into a domestic building contract, we advise to seek advice early before signing the contract because then you'll be aware of your obligations under the contract and what your rights are in relation to the work.
Being aware of your obligations and rights may assist in avoiding disputes throughout the course of the build.
How can I learn more?
Rachael McKendrick.
Principal.
- Disputes & Estate Litigation
- 03 9890 3321
- Email Address: r.mckendrick@robinsongill.com.au
Rachael is a disputes lawyer with a focus on helping building and construction disputes, debt recovery, contractual disputes and wills disputes.
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