Contract Clauses for Homeowners

Here are some suggested clauses to consider for homeowners to manage risks related to the Brewarrina Shire Council v Beckhaus Civil Pty Ltd & 1 Or [2005] NSWCA 248 case:

RiskSuggested Clause
Non-Completion of Work Blessed Sydney Constructions PL v Vasudevan
Issues Impact of Brewarrina principle on renewal power and types of orders available on renewal applications
Breach of ContractIn the event that the builder breaches any term of the contract, the owner shall have the right to terminate the contract.
Delay in Completion Order to rectify defective work not complied with, renewal of order sought for money order
Liquidated Damages In the event that the builder causes delay in completion, the owner may seek to claim liquidated damages as provided for in the contract.

It is important to note that the clauses listed above should be carefully reviewed and tailored to the specific needs of the homeowner and the project at hand. It is recommended that homeowners seek legal advice to ensure that the contract provisions are appropriate and enforceable.

Here are some sample contract clauses that homeowners in NSW may consider including in their home building contracts to manage risks and allow for termination of the contract if the clauses are not followed:

Clause: Quality of Work and Materials

  • The builder agrees to perform all work and provide all materials in a professional and workmanlike manner and in accordance with all relevant laws and building codes.
  • The owner has the right to inspect all materials used in the construction of the home before they are installed.
  • The owner may request that any materials that do not meet the specified standards be replaced with materials that do meet those standards.
  • If the builder does not meet the standards for workmanship or materials, the owner may terminate the contract with written notice to the builder.

Related content: 

Clause: Completion of Work

  • The builder agrees to complete all work in a timely manner and in accordance with the schedule provided to the owner.
  • If the builder does not complete the work within the specified time frame or causes undue delays, the owner may terminate the contract with written notice to the builder.

Clause: Termination for Breach

  • The owner may terminate the contract with written notice to the builder if the builder breaches any of the material terms of the contract, including but not limited to:
    • Failing to perform the work in accordance with the contract specifications.
    • Failing to meet the construction schedule or causing undue delays.
    • Failing to comply with all relevant laws and building codes.
    • Using materials that do not meet the specified standards.
  • The owner may terminate the contract if the builder fails to cure the breach within a specified time period after receiving written notice of the breach.

Related Content: Breach of Contract in Home Building Contracts in NSW

Clause: Termination for Convenience

  • The owner may terminate the contract for any reason by providing written notice to the builder.
  • If the owner terminates the contract for convenience, the owner will pay the builder for all work completed up to the date of termination and for any costs incurred as a result of the termination.

It is important to note that the above clauses are only samples and should be reviewed and customised by a qualified attorney to fit the specific needs of the homeowner and the project.

How We Can Help

Managing risks related to home building contracts is crucial for homeowners in NSW to protect their investments. The sample clauses provided in this article can serve as a guide for homeowners to include in their contracts and allow for termination in case of non-completion, defective work, breach of contract, delay in completion, and liquidated damages. However, it is highly recommended that homeowners seek legal advice to ensure the contract provisions are appropriate and enforceable.

At Contacts Specialist, we understand the importance of having a comprehensive and enforceable home building contract. We can assist homeowners in customising the sample clauses provided in this article to fit their specific needs and ensure that their contracts are legally sound. Contact us today to learn more about how we can help you manage the risks associated with your home building project.