DEVELOPER STRUCTURE, BUILDING AND FINANCE DOCUMENTS
A developer of residential building work, as defined in the NSW Home Building Act 1989, may be required to hold a licence under the category 'builder' and may become subject to the Act as a 'spec' builder - See Developers.
Developers may be structured as an individual, partnership, corporation or joint venture. The developer may be the owner of the land upon which a building is to be constructed. The developer may be a trustee.
The mortgage and other documents required by lenders funding construction often require developers and builders to enter into tripartite and project management agreements. These may require special conditions to be agreed in building contracts.
Our construction lawyers advise developers on their obligations, structuring and documents required to undertake a project.
Multi unit and commercial building contracts require the developer land owner / proprietor to run the contract. A third party may be appointed to supervise the building contract.
The obligations of the developer must be exercised in a reasonable and timely manner when assessing contract claims for progress payments, variations, extensions of time, when adjusting prime costs and provisional sums and whether to accept a suspension of work, a notice of dispute or the achievement of practical completion. The progress of the works must be monitored closely to avoid defects and to claim liquidated damages.
Further, the developer needs to be alert to the time constraints to respond to a Payment Claim received under the NSW Building and Construction Security of Payment Act 1999,
We advise developers as specific issues arise or upon a continuing basis during the build.
Disputes with your builder during construction increase holding costs and jeopordise development margins.
The dispute resolution procedures in contracts should be pursued.
Fair Trading NSW provides a dispute resolution service in relation to residential building work which attempts to mediate an outcome suitable to everyone.
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 developers to follow the dispute resolution procedures in their contract, to request the assistance of Fair Trading, and to bring or defend a claim through NCAT or in the courts.