Preliminary Agreements
A Preliminary Agreement (PA), or Preparation of Plans Agreement, is a common document used by builders dealing with clients in the early stages of building a new home. These agreements do not involve building work and are preparatory to entering a building contract. Some common features are: the consumer is committed to paying a “deposit”, […]
Government Tendering
The Department of Treasury and Finance oversees Tenders WA, which commenced from March 2009. The system replaced Gem Tendering, also known as the Contracting Information Bulleting Board, as the central online source of information on Western Australian public sector tenders and awarded contracts. Key functionality enhancements to the previous system include: · Automatic email notification of new tenders · […]
Fixed Price Contracts
Fixed price contracts are the most common form of domestic building agreement. As the name suggests a fixed price agreement is where the builder agrees to perform building work for a fixed sum. This provides a degree of certainty to both parties, but during a period of escalating costs the builder is likely to include […]
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 […]
Building Inspections: New Homes
Under the Builders’ Registration Act a builder is legally responsible for all faulty and defective work for a period of six years after practical completion. Whether or not you engage a private building inspector will not affect the builder’s obligation for the integrity of the home. However, many buyers do seek assistance from a private […]
Building Documentation
When applying for a building permit, the documents required need to be to a “ready for construction” standard. The minimum requirements for a building project when it comes to documenting can be summarised as: Drawings or Plans – These describe visually, what will be built, where the building is situated, the size of rooms and […]
Construction Times
While many contracts specify a definite time period in terms of “x” number of calendar or working days (which exclude weekends and public holidays), some contracts do not and this space is left blank. This does not mean that the builder has an infinite amount of time to complete the project. Courts have ruled on […]
Contract Variations
Variations to building contracts during construction are a common source of dispute between the parties. Many times clients visit site during the course of construction and request a different material or a structural change to the building plans. Such requests pose a dilemma for the builder because under the Home Building Contracts Act any variation […]
Contracts for Home Building Work
The Home Building Contracts Act 1991 (the HBC Act) provides protection for home owners and persons undertaking home building work. Part 2 of the HBC Act applies to fixed price contracts for ‘home building work’ valued between $7,500 and $500,000. Home building work includes: constructing a new dwelling; carrying out additions to an existing […]