Delays and extensions of time (Qld)

Are you experiencing wet weather delays or has an owner requested a variation? Make sure you provide your extension of time notices to the home owner. If you fail to provide such notices, the owner is entitled to claim damages (liquidated or general) when the contract works are not completed within the building period of the contract.

The Domestic Building Contract Act 2000 (the Act) requires that a building contract states the building period (the number of days to reach practical completion from the date of commencement of the contract works) which includes allowances for certain matters. Such allowances are for foreseeable delays for which you can give an estimate (such as weekends, public holidays and a reasonable allowance for wet weather), and details of foreseeable delays for which you can not give an estimate.

When are extensions to the building period claimable?

Extensions of time are available for most delays that are beyond the builder’s sole control. You may claim an extension of time where work is delayed by a calculable delay such as inclement weather, a delay in excess of the allowance made in the contract, or where the scope of work is altered by a variation. To claim an extension of time, you must give written notice to the client claiming a reasonable extension of time to the building period for the delay.

HIA Domestic Building Contracts

In HIA's domestic building contracts (QC1, QC2 and QC3) the builder must give the written claim to the owner by no later than 20 working days from the later of when the builder become aware of both the cause and the extent of the delay, or no later than 5 working days before the date of practical completion.   Best practice would be to ensure that you provide the notice to the owner as soon as reasonably practicable for the avoidance of dispute, particularly when nearing the practical completion payment and handover.  

What should an extension of time notice include?
Under the HIA domestic building contracts the notice of extension of time must detail the cause of delay, and the amount of days which are being added to the building contract. HIA has an auxiliary Extension of Time booklet available for purchase through the stationary department.

Can an extension of time notice be disputed?

Under the HIA domestic building contracts an extension to the building period is deemed accepted unless the owner provides a written notice of dispute within 5 working days of receipt of the extension of time notice. The notice of dispute must state that the builder's claim is disputed and the reasons why it is disputed.  If the owner does not dispute the claim as required by the contract, the owner may have difficulty later disputing the extension of time claimed.

Remember damages for late completion can be avoided by claiming appropriate extensions of time.

For more information contact your Workplace Adviser on 1300 650 620

_{DISCLAIMER – the above is intended to provide general information in summary form. The contents do not constitute specific advice and should not be relied upon as such. Formal specific advice should be sought by members with respect to particular matters before taking action.}