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The HomeBuilder grant has exceeded all expectations. HIA is aware that this increase in building activity is leading to delays in both the supply of labour and materials.
There will be three stages during a residential building project when you might need to consider how to respond to delays:
Each stage will present different challenges and, if you do not factor in or respond to delays, you may be liable to compensate your client.
Ensure you have adequate time under your building period for the completion of the building project. This may mean that you need to:
While the current level of interest and activity is appealing, and you don’t want to ‘miss out’ on work, making sure you can deliver on what you commit to should be a priority.
This is particularly important given the current requirements regarding commencement timeframes under the HomeBuilder grant.
When assessing your current workload and future commitments you should consider:
Once you have signed the contract you have entered into a legally binding agreement.
Any changes must be made strictly in accordance with the contract.
Under the NT HIA Building Contract for New Homes you must commence building work:
If commencement of building work has been delayed you should consider the reasons for the delay and determine whether you are entitled to extend the finish date under clause 10. For example, vandalism or theft, a variation or any delay of the local or statutory authority.
Delays during construction can be frustrating and cause tension.
They can also lead to disputes.
Being aware of your rights and obligations regarding extensions of time is critical.
An extension of time may be available if the delay is:
There is a non-exhaustive list of what may constitute an extension of time under clause 10 of the NT HIA New Homes Contract.
To claim an extension of time you must:
If you do not claim the extension of time in accordance with the contract you may be unable to rely on it.
Generally you cannot claim an extension of time for delays you cause or a delay that was reasonably foreseeable at the time the contract was signed.
If the homeowner disagrees with the extension of time, there are 2 options:
HIA has extension of time documents available through HIA contracts online.
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