A domestic building contract should always provide for a clear and unambiguous completion date for each stage of building work – quite often, this is not the case when the construction period is stated in the number of days and no fixed dates are specified. From a builder’s perspective, it is most important to send to the building owner any necessary extension of time claims in accordance with the contract terms, as and when they happen and furthermore to ensure a minimal cap is placed on any provision for liquidated damages.
Our experience has shown that all too often building work is delayed, which certainly from an Owner’s perspective can prove disastrous – for example, the Building Owner when entering with a domestic building contract should compare the amount allowed for liquidated damages, against the amount of interest being paid on Building finance and/or accommodation prior to settlement.
From a legal and practical perspective, it is imperative for both Builder and Owners alike to vigilantly monitor the progress of building work and in such regard, a lot of time and expense can be saved by early intervention by an experienced building law solicitor to get the construction schedule back on track or revised to take account of previously unforeseen circumstances.
As a final note on delays and the costs occasioned by them, it is the general position that if there is an allowance made in a domestic building contract for liquidated damages, any amount awarded by VCAT for this claim item, will seldom exceed that liquidated damages amount.
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