So, you’re building your first home, congratulations! Building your first home is one of the most exciting things you will do as an individual or couple. You get to see how the fruits of your labour are transformed into something beautiful, functional and, most of all, incredibly liveable.
However, your new build should come with a written building contract, and it is imperative that you understand its principle clauses. After all, your builder likely has years of experience in contract creation, whilst this may be the only time you sign one in your life!
As such, it’s important to understand their imperative clauses so as not to get stooged at any stage of the build.
Here are five imperative construction contract clauses you have to know for your first build:
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The scope of work
The most reputable building solicitors Melbourne has will always recommend understanding the scope of the work. This entails what kind of work your builder will be doing, as well as the materials they will use and what kind of construction standards you can expect from them. You have provided them with the plans and they have agreed to meet your expectations – the contract should reflect your expectations when it comes to what you want completed!
Payment schedules
As the homeowner, you too have specific clauses that you have to meet to ensure that you don’t end up on the wrong side of any construction disputes. Naturally, one of those will be payment amounts and the dates by which they need to be paid. And, trust us, the construction firm will include the payment amounts and dates in the contract, it’s a big part of the reason that they are in the industry.
Variation clauses
A majority of new builds don’t go exactly to plan. This is normal, as a job as big as constructing a new home is expected to have slight variations along the way. However, there should be clauses embedded to ensure correct procedures are taken when modifying the original construction plans. For example, you may like to include an amendment clause, which stipulates the need for amendment notice, your approval and the date by which the amendment should be completed.
Defects liability & warranty clause
It is absolutely imperative that you understand this clause, and why? Because it stipulates your builder’s liability if they complete defective work, as well as detailing remediation and warranty procedures. As the homeowner, you are going to want to stipulate what will transpire if your builder completes dodgy work (as it does happen!), and so you will want to understand this clause and how you could potentially put it into effect.
Dispute resolution clause
But there is no denying it: disputes do happen in the Aussie construction industry. There are many ways a dispute can happen and, unfortunately, this means they happen a lot. As you are building your first home, you might get the feeling that you are being taken advantage of, and you might therefore wish to resolve what could be an escalating dispute.
As such, it is therefore imperative to understand the dispute resolution clause, which details elements like arbitration, mediation or (but hopefully not) litigation.
Naturally, Melbourne’s best building lawyers can help you understand all of the clauses that may otherwise seem foreign to you. Contracts can be complex, but they don’t have to be, as you can simply contact the experts to work through the details!
