Our law firm provides clients with advice on building and construction contracts and disputes.
Legal Expertise in Building Contacts
For contracts, we review and providing advice including on scope and risk allocation. It is a common misconception in the building industry that there are “standard form contracts” and many owners and developers execute contracts assuming that they are standard form contracts. However, there is no one standard form contract in the construction industry. Instead there are numerous forms of contracts in the building industry each with different risk allocations and each with a different bias to a particular type of party. Parties entering into building contracts need to carefully consider which is the best for them and best suited to the individual scenario and customise each contract to suit their respective needs.\
Due to the complexities involved in building and construction and the significant cost of construction which has increased significantly of late, we find that parties regularly fall into building disputes.
Speak To Our Sydney Construction Lawyers
Our law firm regularly acts in these types of disputes even when they escalate to Court or Tribunal proceedings. These include proceedings involving:
- claims for defective and incomplete work in breach of the statutory warranties contained in s. 18B of the Home Building Act 1989 (NSW);
- claims brought by Owners Corporations against builders and developers in respect of defective work in strata buildings;
- claims for breach of the duty of care imposed by s. 37 of the Design Building Practitioners Act 2020 (NSW) with respect to defects;
- adjudications under the Building and Construction Industry Security of Payment Act 1999 (NSW) which is an interim dispute resolution scheme introduced by the Government to attempt to address cash flow issues for subcontractors and builders.
If you require any assistance in building and construction matters, contact one of our lawyers at [email protected] or call 02 9221 1088 for expert legal advice.
Building and Construction Law FAQs
What is a building contract and why should I have it reviewed by a lawyer?
A building contract sets out the rights and responsibilities of the parties involved in a construction project including the scope of works, payment terms, timelines, and dispute resolution mechanisms. Because no single standard form exists in the industry, it’s crucial to have a lawyer review your contract to ensure it properly reflects your interests, allocates risk fairly, and complies with relevant legislation.
Are there really no standard building contracts in NSW?
Correct. While some contracts are commonly used (e.g., HIA, MBA, ABIC), they vary in terms of complexity and bias toward particular parties. Each project should be assessed individually to determine the most appropriate and customisable agreement.
What legal issues can arise from poorly drafted or misunderstood building contracts?
Poorly drafted contracts can lead to disputes over payment, unforeseen payment dates, scope of work, defects, delays, and liability for additional costs. Misunderstandings about risk allocation or obligations can result in costly litigation or tribunal proceedings.
What types of disputes do construction lawyers handle?
We assist in disputes involving incomplete or defective works, breach of statutory warranties, negligence claims under the Design and Building Practitioners Act, strata defects, and payment issues under the Security of Payment Act.
What are statutory warranties in building contracts?
Under the Home Building Act 1989 (NSW), statutory warranties are implied into every residential building contract. These warranties require that the work will be performed with due care and skill, in accordance with the plans and specifications, using suitable and good quality materials, and that the work will be done in compliance with the law and within the agreed time (or, if no time is specified, within a reasonable time). If a builder or contractor breaches any of these statutory warranties, the homeowner may have a right to legal remedies, including requiring rectification of defective work or seeking compensation
Can owners corporations take legal action against builders or developers?
Yes. Owners corporations in strata schemes can pursue builders or developers for defective work under various NSW laws. We regularly assist with strata defect claims and associated proceedings.
What is the Security of Payment Act and how does it help subcontractors and builders?
The Building and Construction Industry Security of Payment Act 1999 (NSW) gives contractors and subcontractors a statutory right to claim and recover progress payments through a fast-track adjudication process, helping to address cash flow issues. While the Act is designed to ensure prompt payment, disputes frequently arise, especially when a builder goes into administration because claimants may become unsecured creditors and face difficulties enforcing payment or recovering outstanding amounts. The Act provides mechanisms to pursue claims even in insolvency scenarios, but practical recovery can be complex and contentious in such circumstances.
What is a claim under the Design and Building Practitioners Act?
This legislation imposes a statutory duty of care on builders, designers, engineers, and other professionals carrying out construction work in New South Wales. Under section 37 of the Act, these practitioners owe a duty to exercise reasonable care to avoid economic loss caused by defects in or related to building work, both to current and future owners. If this duty is breached and defects or losses result, affected parties—including owners corporations and subsequent purchasers—can bring a civil claim for damages, even if there is no direct contractual relationship with the practitioner.
Do you assist with disputes that go to court or NCAT?
Yes. We represent clients in litigation and tribunal proceedings, including in the Local Court, District Court, Supreme Court of NSW, and the NSW Civil and Administrative Tribunal (NCAT).
When should I contact a construction lawyer?
Engage a lawyer before signing any building contract, when issues arise during construction, or immediately if you suspect defective work or a breach of contract. Early legal advice can help prevent disputes or strengthen your position in a claim.
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