Picking out tiles might be on the minds of most people building their home, but picking a lawyer who can make sense of the building contract is a far wiser investment.

People building a home who are unhappy with the way the job is progressing are frequently caught out, discovering too late that lengthy delays or shoddy workmanship are not enough for them to get out of a bad contract.

According to Havilah Legal, the average Housing Industry Association Lump Sum Building Contract can be a minefield for the unaware.

It may all seem pretty simple: the builder has to build you a house that accords with the agreed plans and specifications, in a proper and workmanlike manner, for the price and within the time specified in the contract.

But once you have signed that contract, you are bound by its terms and conditions until the contract expires or one of the parties breaches it in a serious way.

Common problems for those building a home include discovering:

• the work was not done in a proper and workmanlike manner;
• the work was done too slowly and the owner must pay extra in rent or mortgage payments for alternative accommodation while they wait; or
• the work wasn’t started on time, the builder blames circumstances beyond its control and threatens to stop work unless the owner agrees to increase the contract price.

Unfortunately, delayed completion and poor workmanship are not usually regarded as such serious breaches that the home owner will be entitled to end the contract, and trying to terminate it without the proper legal advice can be costly.

In fact, if you do end the contract while it remains in force, the builder can sue you for all the costs that they have incurred up to the date of termination – plus, in some cases, a portion of the profit that they would have made had the contract been carried out to completion.

Still, there are steps homeowners can take to save themselves thousands of dollars: it’s all about how and when you go about it, and this is where the right legal advice can be a lifesaver.

For example, if the builder tries to increase the contract price after you have signed it, you may be able to refuse the price increase without breaching the contract as long as you do it at the right time, in the right way.

Acting quickly is vital, as owners who delay may find they have limited their ability to seek redress.

Havilah Legal can help you work out what needs to be done when, and make sure you don’t lose your rights in the process as a result of bad timing.

Our building and construction law team not only provides legal advice to people who are building or who have completed building of their home, but also assists those planning to build, advising them on an appropriate building contract.

You can often save tens of thousands of dollars in court costs by taking advice about what your building contract means, and how to avoid some of the more common traps and pitfalls before you sign up with a builder.

For expert advice before, during or after building your home, make an appointment with Havilah Legal’s building and construction team or contact our Legal Information Desk lawyer, Ken Eastman. For an initial 20-minute consultation at the fixed price of just $35, he can assess your situation and provide you with straightforward and practical advice on what steps you need to take, and how best to proceed.

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