Builders Contracts in Australia - Issues to Think About
In Australia all home owners should have a proper building contract between themselves and the builder they are hiring. The Building Disputes Committee deal with any disputes between the homeowner and the builder.
Ensure you get the builder to sign all contract documents just as he asks you to sign them. A builder will always get the client to sign any variation orders before he actions them. You must insist the builder returns you a copy of the variation order with his signature on it. This is important because if the builder mistakenly fails to action a VO he may perhaps contest having received your signed VO in the first place and you will not have any proof to show otherwise.
The builder is responsible for all aspects of construction and can't off-load his responsibilities by having a client sign a VO to absolve them. The builder should meet all Australian Standards in the construction and can't downgrade these even with the owner's written approval. As an example, the builder should make good any council footpaths damaged during construction even if the owner has signed a VO to absolve him of repairs.
Power and water used on site is payable by the client unless the contract states otherwise. The builder is responsible for making sure that all materials and goods used in the construction are suitable for the intended purpose. As an example, a hot water unit that is inadequate to supply hot water to all hot water taps, even if the client has requested it, would need to be replaced by the builder with a suitable model if the issue was brought to the Building Disputes Committee.
Site access for the owner should be within working hours and must not impede the progress of work on site. If the owners wish to authorise an additional individual to inspect the site, they need to inform the builder in writing. Lending authorities ought to be given access when required.
It's not sufficient to make changes to a plan or other contract document and sign and return it to the builder. The client must make the requested change in writing and have a VO raised. What may well seem an uncomplicated change to a client could cause a big problem. As an example, halfway through construction a client relocated the septic tanks at the rear of his block on a signed plan and forwarded it to the builder. The septic tanks had been installed by the owner's plumber at the levels indicated on the plan after the house was completed. At this stage it was discovered that there was insufficient fall from the home to the septics. If the increased distance to the septics had been noted at the beginning of the job then the finished level of the tanks could have been adjusted to accommodate. Consequently, the owner incurred considerable expense to lower the tanks.
The supply of some goods by the owner can trigger problems when the tradesperson turns up to install them if the goods have not yet arrived.
The delivery of materials to site could be particularly difficult after the home has been locked up and the owners or their delivery driver don't have access. The builder's insurance won't cover your goods unless you've made particular arrangements.
Compatibility of goods may be a trouble (e.g. range-hoods that do not fit flues). Air-conditioners or pumps requiring special wiring that the builder was not alerted to. The store you purchased goods from inadvertently sells them all with out holding on to yours. The new model may well have a different cut-out size which doesn't fit the cabinets already made. Owner-supplied goods are best avoided but when you need to, it's wise to give them to the builder from the start if he is prepared to store them. An owner-supplied hot water unit (HWU) might be a difficulty if the incorrect size pipework is installed by the plumber. Low pressure units need smaller diameter pipes. The HWU needs to be nominated from the outset.
Given the high frequency of theft from building sites it's wise to insure all owner-supplied goods.
All info within the contract should be clear and specific to avoid any misunderstanding. If the issue can't be resolved then you can apply to the Building Disputes Committee IBDC of the Builders Registration Board for a verdict. The Committee will act using the Australian Standards as the basis for their decisions
Before signing a building contract ask to see the builder's indemnity insurance and check that it is current.
If the building is close to a water authority sewer line then you're likely to need concrete piles to support the footings under that part of the building which is close to the sewer line. This will be a high-priced exercise and it may be better to move the building or change its shape.
The water authority can vary the location of a water meter by up to one metre at a very low price but any further and it may well cost hundreds of dollars. If it needs to be moved but the builder has not alerted you to this problem before contract signing, then the builder must pay to have the meter located as per the drawings.
The Australian council health officer will need to inspect the septic system before it is covered over. The plumber will arrange this.
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