Office of Fair Trading Contracts
NSW Fair Trading Home Building Contract for Work Over $20,000 is issued by the NSW government. As such, you can be sure it is more objective and fair to both yourself and your builder, as opposed to other standard form contracts like those issued by the Master Builders Association NSW or the Housing Industry Association, which are generally skewed more towards the builder’s favour. Considering the importance of a proper home building contract, especially when the value exceeds $20,000, it’s crucial to be well-informed about its intricacies.
Nevertheless, it would still be prudent to go over your contract and be mindful of important clauses, to make sure your home building project proceeds smoothly, and that you have a recourse should you hit a bump in the road at any point during the build. Understanding the nuances of the template of NSW Fair Trading Home Building Contract for Work Over $20,000 can save you from potential pitfalls in the future. For illustration purposes only.
Important Clauses You Need to Watch Out For
Here are the top clauses you need to look into, as they affect essential risks relating to time, cost, and quality. Being aware of these clauses is not just about knowing your rights but also about understanding your obligations. This knowledge can be invaluable during negotiations and in ensuring that the contract is fair and balanced.
Clause 5 Commencement of work
- What it is: Sets out the date when works are to be begun
- Purpose: Time Cost
- This clause is crucial as it sets the tone for the entire project. A clear commencement date ensures that both parties are on the same page and can plan accordingly.
- Time
- Cost
What it is:
Determines when works must be completed
Risk minimised:
- Time
- Cost
Clause 7 Extension of time
What it is:
Sets out the instances when delay may be allowed
Purpose:
This affects other matters such as completion and payment
Risk minimised:
- Time
- Cost
Clause 8 Completion of work
What it is:
Sets out the instance when the work is to be deemed completed
Purpose:
To set the obligations of the parties as well as their rights in relation to project completion
Risk minimised:
- Time
- Cost
- Quality
Clause 12 Progress payments
What it is:
Sets out the instance when the work is to be deemed completed
Purpose:
To set the obligations of the parties as well as their rights in relation to project completion
Risk minimised:
- Time
- Cost
- Quality
Clause 13 Variations
What it is:
Sets out when changes are allowed to be made by the parties
Purpose:
To determine whether a variation is allowable, and to determine when penalties may be imposed, if not
Risk minimised:
- Time
- Cost
- Quality
Clause 14 Time for payments
What it is:
Sets out the schedule for payments after progress payment claims are made
Purpose:
To determine the parties’ rights and liabilities in terms of being paid and receiving payment
Risk minimised:
- Time
- Cost
Clause 15 Final payment
What it is:
Sets out when payment must finally be made
Purpose:
To make sure that the builder does not make undue demands for payment
Risk minimised:
- Time
- Cost
Clause 23 Defects rectification
What it is:
Sets out the procedure for rectifying defects
Purpose:
To establish owner’s right to be compensated for damage caused by the owner
Risk minimised:
- Time
- Cost
- Quality
Clause 24 Suspension of work by contractor
What it is:
Sets out the instances when the builder or contractor may suspend the works
Purpose:
To lay out builder’s right to suspend, and home owner’s obligation
Risk minimised:
- Time
- Cost
- Quality
Clause 25 Termination of contract by owner
What it is:
Sets out the owner’s right to terminate
Purpose:
So the owner will know the proper way of terminating the contract
Risk minimised:
- Time
- Cost
- Quality
Clause 26 Termination of contract by contractor
What it is
Sets out the builder or contractor’s right to terminate the contract
Purpose:
So builder can terminate the contract for cause, without the risk of being in breach
Risk minimised:
- Time
- Cost
- Quality
Clause 27 Disputes
What it is:
Sets out the procedure that parties need to undergo in case there is dispute
Purpose:
To save parties’ time, energy, and financial resources
Risk minimised:
- Time
- Cost
- Quality
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How We Can Help
Navigating the intricacies of the 2020 Office of Fair Trading Home Building Contract for Work Over $20,000 can be challenging. With over a decade of specialisation in construction law, I’ve been the guiding hand for homeowners, offering them clarity on their contractual and legal rights. It’s not just about understanding the NSW Fair Trading Contract for Works Over $20,000 but about ensuring that every clause and provision works in your favour. Representing homeowners in NSW, Australia, across all courts of competent jurisdiction, I’ve provided tailored advice on the Fair Trading Home Building Contract, ensuring their rights, risks, and obligations are clear. My expertise extends to negotiating and amending contracts to truly echo the homeowner’s intentions.
If you’re seeking advice or have concerns about your contract, please don’t hesitate to email me directly. Alternatively, you can organise a call to discuss your specific needs with me, your dedicated construction lawyer. Secure your interests and ensure a smooth home building journey; get in touch today.
