By Meika McHardy - 4 Jul 2018
Building disputes can be very costly to resolve and cause
both parties a lot of stress. If a dispute arises before
construction is complete, building work is often suspended until
the dispute is resolved. This can cause delays and can put
unfinished work or materials on site at risk of damage. On
residential projects in particular, a homeowner will be very
invested and emotions can run high. Fortunately, there
are things all parties can put in place to help prevent
disputes.
Disputes can quickly escalate and cause a breakdown in trust
between parties. When there is an irretrievable deterioration in
the relationship, one party may purport to terminate the contract.
This can cause further problems if they do not have valid grounds
to terminate.
Building disputes arise for a variety of reasons but the most
common disputes on residential projects relate to:
- delays
- disagreement over what is a variation to the scope of work
- allegations of defective workmanship; and/or
- overcharging.
At the crux of the dispute is often a misunderstanding of rights
and obligations of the parties under the relevant building
contract, a lack of communication and/or a budget blowout.
By far the best way to prevent building disputes is for the
parties to invest time at the outset of the project to thoroughly
identify the scope of work and any potential issues. Once the
parties reach agreement on the issues, it is critical that the
building contract properly reflects and records that agreement.
This process can be quite daunting and indeed even an impossible
task for parties who do not have specialist experience. Getting
expert advice can save a lot of heartache and cost further down the
track.
Once the project is underway, it is critical for the parties to
record all variations (preferably all discussions) in writing to
avoid miscommunication. A written record of any agreed change is
also crucial evidence should a dispute arise. A prudent builder
should also keep the homeowner updated in writing about all issues
that cause delays and invoice regularly on charge up jobs to avoid
nasty surprises. Shock budget blowouts can often be avoided by
keeping a homeowner informed about how variations will impact on
the final price.
Where issues of quality of workmanship arise, the joint
appointment of an independent building surveyor to assess
workmanship and identify any genuine defects will also assist
parties in reaching agreement on any remedial work that may be
required.
At the end of the day, however, even the best laid plans can go
wrong and the unpredictable can and often does happen. If you do
end up caught in a building dispute, getting specialist legal
advice as soon as possible is your best chance of achieving a
speedy and cost effective resolution.
Contacts
Meika
McHardy
Geoff
Hardy