Residential Construction: The Importance of a Contract
Residential Construction: The Importance of a Contract A domestic building contract does not have to be complicated but the consequences of not having a robust contract with your builder can be. Picture a villa in a prestigious location, it is in need renovation and an extension and would allow the property to keep up with the neighbours. A builder has been found, a price agreed and all involved are hopeful the works will be completed in 18 months. There is just one, seemingly small problem, the contract consists of five pages of outline design drawings and a promise to carry out the works described in the document for an agreed price. Perhaps not surprisingly, the above project does not complete in 18 months and the price is certainly not as agreed. In fact, the project eventually completes at twice the anticipated price and over a year late using a replacement contractor. In the interim the original contractor is terminated and legal proceedings commenced in relation to the amount d