By Pierce Bedogni - 7 Aug 2019
Not all building projects run smoothly and for one reason
or another, there may be a point where building work is suspended.
Should the building project end up in that position, both parties
to the building contract have obligations and there are a number of
matters to consider.
- The builder should take basic precautions to ensure that the
building site is secure to minimise any damage (through theft,
vandalism, or natural causes) and to guard against latent hazards.
You will also need to decide whether to remove any hire equipment,
to save costs.
- As the builder will no longer have any control over the
building site, logically, health and safety responsibility would
return to the owner. This should be pointed out to avoid any
confusion.
- Depending on the length of the suspension, it is likely that
the expected project completion date will be extended, which may
result in the Contract Works Insurance lapsing before the new
completion date. This will require the party who took out the
insurance to speak to their brokers about extending the date for
any insurance.
- The builder making it clear that he is ready, willing and able
to resume work once the delaying issue is resolved. Refusing to do
so may be seen as an abandonment of the building project and give
rise to termination of the building contract. However, it is
equally important that works should only have to resume once the
builder has freed himself from other commitments necessarily
undertaken during the period of suspension.
The above is just a snapshot of what needs to be considered upon
suspension. If you are considering suspending building work, or
your building project has been suspended, contact Pierce Bedogni
or any member of our construction
law team for assistance.