Practical Risks and Benefits Being Managed
Delays Due to Various Reasons Beyond the Builder’s Control
Delays in construction projects can occur due to various reasons beyond the builder’s control, such as inclement weather or disputes with neighbours. The benefit of Clause 19 is that it allows the builder to claim a reasonable extension of the building period, without incurring penalties or liquidated damages.
This gives the builder the flexibility to deal with unforeseen circumstances that may arise during the construction process, without having to rush or compromise on quality. Additionally, it ensures that the builder is not held responsible for delays that are beyond their control, which is fair and equitable.
Failure to Notify the Owner of an Extension of Time
Another practical risk that Clause 19 manages is the failure to notify the owner of an extension of time. This can occur if the builder fails to provide written notice of their entitlement to an extension of time within 10 working days of becoming aware of the cause and extent of the delay.
The benefit of Clause 19 in this instance is that it ensures that the builder must provide timely notice to the owner of any entitlement to an extension of time, which promotes transparency and accountability in the construction process. This allows the owner to plan and adjust their schedules accordingly and prevents any potential disputes that may arise due to a lack of communication.
Disputes over the builder's entitlement to an extension of time
of time. In this situation, the benefit of Clause 19 is that it provides a mechanism for the owner to dispute the builder’s entitlement. If the owner disputes the builder’s entitlement, they must give written notice to the builder within 5 working days, detailing the reasons for the dispute.
This allows both parties to present their case and reach a fair and reasonable resolution. It ensures that the owner has a say in the extension of time process, and prevents any potential abuse or misuse of Clause 19 by the builder.
Owner-Caused Delays
Owner-caused delays can also occur during the construction process, such as when the owner causes an extension of time due to an act, default, or omission. The benefit of Clause 19 in this scenario is that it ensures that the builder receives delay damages for each day caused by the owner.
For every day the owner causes an extension of time due to an act, default, or omission, delay damages are payable to the builder on demand. This ensures that the owner is held responsible for any delays that they may cause, and incentivizes them to cooperate and act in good faith throughout the construction process.
How We Can Help
As an expert construction lawyer in Australia, it is important to understand the practical risks and benefits managed under Clause 19 of the HIA NSW Contract. By comprehending this clause, builders and owners can effectively manage delays that may arise during the construction process and avoid potential disputes. It promotes transparency and accountability between both parties and ensures that delays are appropriately compensated.
If you are a homeowner facing issues related to Clause 19, we encourage you to get in touch with our expert construction lawyer for a free 15-minute consultation, so that we can assist you in navigating the complexities of the HIA NSW Contract and protecting your rights.
Related content: Disputing Extension of Time Claims: Legal Services for Homeowners
