Construction Matters: Legal and Contract Structure Advice

With a background and qualification in building and construction law as well as many matters concerning home extensions, property renovation, refurbishment and commercial construction, our team is well placed to handle disputes involving complex technical issues as well as substandard work, delays and costs.

Construction legal advice - who to rely on

Construction contracts can be long and highly detailed documents, often taking hours to read through and understand. This is why getting advice from a lawyer before you sign can be invaluable to protect you against contractual claims.

Hoping that good performance on site will protect you from such claims is not enough - we frequently see situations where parties have performed very well operationally but lose out commercially and contractually.

Regardless of whether your construction contract expressly mentions it, it may well be affected by construction contract law which is why it's important to ensure you are clear on any amendments to a standard form contract and the exact terms you are agreeing to.

Often in domestic as opposed to commercial build or refurbishment projects, there is no formal written contract between the customer and builder. Instead, the contract is formed through emails and texts between the parties and documents such as an estimate and schedule of work. This can lead to confusion and ambiguity as to what has been agreed in terms of the main construction contract, variations and delays.

Although there has been an increase in standard-form contracts, these are still in the minority in home building and construction projects. In both scenarios the builder’s failure to properly specify the works agreed to be carried out, the payment terms, completion date and variations are a breeding ground for problems and disagreement.

What should be included in a construction contract?

We advise our clients on many different forms of construction contracts and suggest amendments to them when needed. We know construction law, and our knowledge means that we can deal with the legalities and understand the commercial risks that need to be dealt with before a construction contract is entered into.

Contracts are usually written clearly and concisely to highlight the main issues so that one can understand the risks posed by clauses such as liquidated damages clauses, and allow the person himself to make decisions as to how he or she wishes to deal with or manage those risks.

Here are a few points, among others, that should be included in a construction contract:

1. Name of the contractor and contact information: include the contractor's licence number along with phone number, email address, and company address.
2. Name of homeowner and contact information: include the owner's phone number, email address, address of the property where work will be done.
3. Description of property in legal terms: write the property description as detailed as possible.
4. List of attachments to the contract: include blueprints and any other specifications requirements for the job.
5. List the cost: include completed project costs and decide whether the homeowner will pay in several instalments rather than just a down payment at the beginning.
6. Description of the work and the completion date: describe what is being constructed and the exact or estimated date of completion.
7. Insurance clause: the type of the required insurances and who will take out the insurances.
8. Breach of contract clause: indicate the situation where you have the right to sue for breach of contract.
9. Unforeseen circumstances clause: provide what happens if there are unexpected circumstances such as hurricanes, floods, or unavailability of materials.
10. Inspection and access: allows the owner to inspect the property during reasonable times and for the contractor to have unlimited access to the property.
11. Termination of a contract clause: describe how the homeowner can terminate the contract.
12. Disposal of all materials and conditions upon completion: agree to remove excess and hazardous materials and to leave the property in “broom clean" condition.
13. Signature and date by both parties

Following our initial construction contract advice, we continue to support you in your negotiations, including commentary on and discussion of further proposals and amendments and representation in meetings.

Our team is experienced in common construction disputes, including payment claims, negligence, breach of construction contract, defective premises, misrepresentation, misstatement, breach of statutory duty and consumer protection law.

For advice on dealing with increasing costs and delays or anything in relation to a construction project, contact us or call us now on 1800 77 66 46.