BUILDER CASHFLOW MANAGEMENT / LEGAL SERVICES
The NSW Home Building Act 1989 regulates builders and trades by requiring them to be licensed to do residential building and other work. It also mandates the disclosures and terms which must be included in home building contracts.
Developers of commercial and industrial projects establish purpose formed structured entities to contract with builders. They will seek terms favourable to them and to their financiers. Amendments may be sought to restrict the builders rights to exercise the time, claim and dispute procedures in standard form contracts. Third parties may be appointed to supervise the contract on behalf of the developer.
Our construction lawyers advise builders as to the terms of their contracts, assisting them to assess their risk before committing to undertake a project.
Builders should document, document and further document the administration of their commercial and industrial contracts. Robust contract administration is required by the builder.
Claims for progress payments, variations, EOT's, and prime cost and provisional sum adjustments should be made in a timely manner and be supported by documents. Notices of suspension, dispute or practical completion should be correctly served and be made in conformity with the procedures in the contract.
Payment Claims and adjudication can be sought under the NSW Building and Construction Security of Payment Act 1999 (SOP Act) should be pursued.
We advise builders as specific issues arise or upon a continuing basis during the build.
Cash flow is the life blood of a builder. The cost, time and effort of prosecuting a home owner or developer is detrimental to the day to day running of a construction business and could be fatal to its survival.
The dispute resolution procedures in contracts should be pursued. Protection from contract cancellation and liquidated damages should be sought under the provisions of the SOP Act.
Unresolved disputes can be escalated to the NSW Civil and Administrative Tribunal (NCAT) or through the Local, District and Supreme Courts depending on the nature and value of the claims in dispute.
Our construction lawyers assist builders to follow the dispute resolution procedures in their contract, to engage the protection of the SOP Act, and to bring or defend a claim through NCAT or in the courts.