Home Indemnity Insurance
Home indemnity insurance covers the homeowner (and subsequent owners) for faulty, unsatisfactory or incomplete building work and loss of deposit should the builder die, disappear or become insolvent within 6 years from the date of practical completion. Currently all residential building work valued over $20,000 must be covered by a policy of home indemnity insurance […]
Off the Plan
An off the plan property transaction involves signing a contract with a developer to buy either vacant land, or land to be developed with a building on it, before land sub-division or titles are issued. Usually an initial deposit is paid at the time of contract signing, with the balance payable at settlement, after title […]
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 […]
Cost Plus Contracts
A cost plus contract is becoming a popular form of building contract in today’s busy building environment. Essentially it’s a contract where a builder, using its best endeavours, obtains materials and services at each stage of the building process, passing the actual costs on to the owner and adding an agreed margin to cover overheads […]
Extension of Time
Most building contracts allow the builder to claim an extension of time for completion of the project where there is a delay which could not reasonably be foreseen at the time of contract signing. Such delays could include strikes, unfavourable weather and unavailability of materials or labour. However, the exact terms of the building contract […]
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 […]