Building Delays – What Can You Do About Your unfinished Dream Home?

by | 9 Apr, 2024

Due to the unprecedented nature of Covid-19 over  the past few years, hundreds of building projects around NSW have been delayed. Supply chains have been disrupted, prices of materials are skyrocketing and construction companies are experiencing a shortage of skilled workers.

These delays are causing the anticipated completion time of home building constructions around the state to be delayed. The NSW Fair Trading Home building contract for work over $20,000 contains clauses which advise you on what to do in the event of a building delay. This is the document that your builder would have asked you to sign prior to commencing any work on your property for any work over $20,000.

A delay in building and construction is when the build takes longer than the period agreed upon in your contract. In Clause 6 of your signed NSW Fair Trading Home building contract for work over $20,000 your builder should have written the expected completion date of the build.

Additionally, Clause 9 of your NSW Fair Trading home building contract establishes the Statutory Warranties which require a builder to finish construction by the agreed date, or within a reasonable time negotiated upon between the parties. These Statutory Warranties are provided by the Home Building Act 1989 (NSW), and neither party can opt out of them.

What can you do if your delay turns into a dispute?

A delay becomes a building dispute if the delay is not covered by a Notice for Extension of Time under Clause 7 of the contract.

The first step in resolving any dispute is to genuinely attempt to reach an understanding and create a solution which is suitable to both parties. Open, honest, and respectful communication is key.

However, if efforts at negotiation fails, the next course of action can be found in Clause 27 of your contract, this the dispute resolution clause, which involves sending the builder a written notice. The instructions for giving a builder written notice are contained in Clause 28 of your contract. This is your first step in initiating an informal attempt at dispute resolution.

Should your attempts at dispute resolution fail, we are here to help you navigate the formal dispute process via the appropriate arbitration or court methods. Please give us a call on Connor & Co Lawyers are experienced in building and construction dispute resolution and can provide you with personalised advice for your particular situation. Please call us on 02 9299 6696 and speak directly to one of our lawyers.