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 […]
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 […]
Contracts for Building
A modest to large house could take about 12 months to build and involve 70 to 80 tradespersons. The slightest problem or variation can cause delays and cost increases. If we accept there are elements of risk in all building projects, the question is: who is to take on those risks? The basic premise of […]
Construction Starting Date
Defining the length of a construction period is not such a simple matter as it might appear. It is critical that you read your building contract carefully as the construction period probably does not commence from the date of contract signing. In order to determine the construction period, you need to make sure that you […]
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 […]