Waste Management Contractors
Most of the contractors who specialise in recycling construction and demolition materials in Western Australia will negotiate removal logistics and prices for materials with you so that solutions are tailored to your project. Enquire about different costs for any separated waste. Ensure that at all times collectors implement litter management controls like covering their loads […]
Rise and Fall Clause
In times of volatile building costs, builders will look at ways of reducing the risk of signing “fixed price” contracts with clients, contracts which leave the builders bearing the total burden of fluctuating costs over the construction period. In the last boom, massive increases and fluctuations in the price of roof tiles, steel and copper […]
Site Works and Contracts
Site costs can be a difficult element of a building contract. In most situations, builders will not specify an exact amount for site works, but will nominate a “provisional sum” or best estimate which may be adjusted up or down depending on work actually required. Under the Home Building Contracts Act a builder cannot just […]
Shared Equity Scheme
A shared equity arrangement is where two or more parties agree to co-purchase an asset, and share in any capital appreciation of that asset over time. The parties may agree on a 70/30 ownership or any other shared arrangement. The parties need to consider whether recurring expenses such as stamp duty rates and taxes and […]
Progress Payments and Disputes
Many building contracts have an agreed price for the whole of the work with payments made when the house reaches certain stages – slab, plate height, lock-up – and so on. Usually the builder makes a progress claim which needs to be settled within a specified time period or else penalties and interest can apply […]
Legal Aspects of Home Purchase
Normally a buyer first comes into contact with the property through a real-estate agent. Remember that the agent works for the seller, not for the buyer, and that the seller pays the agent’s fees or commission for negotiating the sale. This means that the agent’s obligations are primarily owed to the seller, not to the […]
Prime Costs and Provisional Sums
Prime Cost (PC) items and provisional sums (PS) are two items in a standard building contract which cause great confusion among homebuyers. Most building contracts are called “fixed price contracts”, but the final contract sum can vary due to fluctuations in PC and PS items. A PC item is an amount of money included in […]
Put and call options
Property transactions using “put and call options” have been common in the Eastern States and are used sparingly in WA. This arrangement can be useful to both a vendor and a purchaser in certain circumstances. Put and call options give the purchaser the right to enter a contract of sale for land within a specified […]
Liquidated Damages
A liquidated damages (LD) clause is common in many building contracts for commercial or institutional buildings, but less common in residential contracts. Liquidated damages are an amount which the builder agrees to pay to the homeowner for late completion of the project. This is usually an amount per day or per week. Liquidated damages are […]
Practical Completion
Practical completion is a term that is misunderstood by many home buyers. Generally it means the point where all building work is complete or all but completed, in accordance with the contract, and the house is reasonably fit for occupation. A building contract usually defines practical completion being when all works are completed, except for […]