Delays in Home Building: Find Answers in Your HIA Contract
By Contracts Specialist|September 07, 2022
One of the common causes of building disputes is delay in construction. If you are using the HIA NSW Residential Building Contract for New Homes, you may refer to it as a guide on how to settle said dispute.
Delay in Home Building
The duration of your home building project should not exceed the time frame agreed upon in Contract. If this does happen, there will be delays which can lead to cost increases and/or inconveniences for you as well since it forces people back into their old homes while they're still being renovated or replaced due other renovations taking place around them
Additionally, the HIA contract sets out the Statutory Warranties that require a Builder to finish construction by the date agreed upon, or within a reasonable time.
Which HIA Clauses Deal with Delay?
Aside from those mentioned above, the clause on Extension of Time and Liquidated Damages deal with delay.
A Notice of Extension of time is required to be given by the Builder if they foresee that construction will be delayed. If the Home Owner approves, the delay will be allowed and will not give rise to dispute.
On the other hand, if no Notice is given, or if the delay is made without the Home Owner’s consent, the Builder will be considered to be in default, and will be liable to pay Liquidated Damages.
When is There Delay?
There is delay when construction fails to reach practical completion by the date written in the contract. However, not every delay renders the Builder liable for damages, as for example, when the delay is covered by a Notice for Extension of Time.
When Delay Turns to Dispute
Delay turns into a building dispute if the delay is not covered by a Notice for Extension of Time, or when the delay is unreasonable.
How to Settle Dispute from Construction Delays
The HIA contract allows you to terminate the contract for breach.
The HIA contract also sets out the procedure for dispute resolution, should you elect the same.
If after undergoing the above, the dispute remains unresolved, you have recourse with the Office of Fair Trading, the NCAT, and the courts – in that order.
How We Can Help
To anyone who has ever had a dispute with their builder, the legal team at Contracts Specialist is an oasis of calm. With over ten years experience in construction law and expertise on all things related to residential building contracts - including disputes – you can rest assured that they'll have your back no matter what happens during this process.
Delay in Home Building
The duration of your home building project should not exceed the time frame agreed upon in Contract. If this does happen, there will be delays which can lead to cost increases and/or inconveniences for you as well since it forces people back into their old homes while they're still being renovated or replaced due other renovations taking place around them
Additionally, the HIA contract sets out the Statutory Warranties that require a Builder to finish construction by the date agreed upon, or within a reasonable time.
Which HIA Clauses Deal with Delay?
Aside from those mentioned above, the clause on Extension of Time and Liquidated Damages deal with delay.
A Notice of Extension of time is required to be given by the Builder if they foresee that construction will be delayed. If the Home Owner approves, the delay will be allowed and will not give rise to dispute.
On the other hand, if no Notice is given, or if the delay is made without the Home Owner’s consent, the Builder will be considered to be in default, and will be liable to pay Liquidated Damages.
When is There Delay?
There is delay when construction fails to reach practical completion by the date written in the contract. However, not every delay renders the Builder liable for damages, as for example, when the delay is covered by a Notice for Extension of Time.
When Delay Turns to Dispute
Delay turns into a building dispute if the delay is not covered by a Notice for Extension of Time, or when the delay is unreasonable.
How to Settle Dispute from Construction Delays
The HIA contract allows you to terminate the contract for breach.
The HIA contract also sets out the procedure for dispute resolution, should you elect the same.
If after undergoing the above, the dispute remains unresolved, you have recourse with the Office of Fair Trading, the NCAT, and the courts – in that order.
How We Can Help
To anyone who has ever had a dispute with their builder, the legal team at Contracts Specialist is an oasis of calm. With over ten years experience in construction law and expertise on all things related to residential building contracts - including disputes – you can rest assured that they'll have your back no matter what happens during this process.
