BuildR Services

What is peace of mind worth when undertaking the biggest financial commitment most people will make in their life time, having a new home built?

The type of contract used will depend on whether it is a commercial or domestic project. That is a retail shop or workplace or a residential building. Domestic building contracts are subject to the Domestic Contracts Act 2000. This Act is designed to protect the resident home owner who often has little knowledge of contract law.

Domestic contracts need to comply with the requirements of the Act and approved contracts are available free on line from the BSA, (see link from this web site) or can be purchased from the HIA or the Master Builders Association. Contracts consist of two main sections, the Schedule, and the General Conditions. The Schedule is the main section that you and your builder will fill out and sign. It includes information about the parties, the commencement and completion times, finance and payment terms. The general conditions cover both common and legislative law provisions that are legal commitments by the parties and can be enforced in the Tribunal.

The Act also requires that an owner be provided with an information statement book which explains specific aspects of the Act and the responsibilities of the parties.

You are allowed a 5 day cooling off period after signing the contract and receiving the information book to review the contract and get professional advice on what you have signed up for. If you aren't satisfied with any aspect of the contract you then have time to talk it through with your builder, make amendments or terminate the contract. The builder is entitled to any out of pocket costs plus $100.

One of Trevor’s services is to take the owner through the contract pointing out the meaning of terms and what people should be aware of as the construction process progresses and payment claims are received. Be confident you are fully aware of what you and your builder’s obligations are under the contract.

Examples:

1. There are 3 contracts available. Is the builder using the contract best for me?
2. What is liquidated damages and have I allowed a realistic amount if the contract goes over time?
3. Practical completion: - The builder wants payment before we can move in, the construction time has run over, we are renting and now there is interest from the bank and we have outstanding grievances’, what do we do?

A one hour consultation is $165. Contact Trevor on 0438742942 to make an appointment.

Most people are aware that the cost of taking a dispute to court can often be more than the amount in dispute. This has become a deterrent to people contesting in court what they feel is a grievance, or they don’t feel they should be paying extras being claimed or they may want to take action to recoup damages. Many people are intimidated by the process and back down even when they are the one aggrieved.

The answer is mediation. Having a third impartial person sit in on the discussions and by talking privately to the parties in a conciliatory manner, the problem can often be overcome and an agreement reached.

Going to the Tribunal or through the court process means the parties are bound by procedural and evidential rules which can mean the process could drag out for months. There is also your legal costs, as well as expert witnesses and if things don't go as expected you could be paying the other parties costs as well. Not only is there the out of pocket expenses but also the time lost getting the evidence together and the stress of being involved in a confrontationist process. The cost in time can be as much as the money expended and the whole process could be carried out in the public arena with lawyers, rather than the disputants, in control.

Abraham Lincoln once said to his fellow lawyers:-

"Discourage litigation; persuade your neighbors to compromise when ever you can. Point out to them how the normal winner is often a real looser; in fees, expenses and wasted time. As a peace maker the lawyer has a superior opportunity of being a good man"

Times haven't changed much, but the legal fraternity has, and you will find that they often encourage people to look to 'Alternative Dispute Resolution', as it has become known, to resolve differences.

Alternatives to the formal courts processes are:

1. The Consumer and Commercial Tribunal. (Which includes mediation)
2. Building and construction industry payments act.
   [Building industry participants only ] See the BCIPA Website, or the BSA Website.
3. Arbitration
   Arbitration is reserved mostly for major commercial disputes. The parties formally agree to accept the decision of the Arbitrator.
   The Institute of Arbitrators & Mediators Australia
   
4. Mediation
   As elegantly defined by Folberg and Taylor
   "A process by which the participants, together with the assistance of a neutral third party systematically isolate dispute issues in order to develop options, consider alternatives and reach consensual settlements that will accommodate their needs. Mediation is a process which emphasises the participants own responsibilities for making decisions that effect their lives."
   The NADRAC Definition
   A process in which the parties to a dispute, with the assistance of a neutral third party (the mediator), identify the dispute issues, develop options, consider alternatives and endeavour to reach an agreement. The mediator has no advisory or determinative role on the content of the dispute or the outcome of its resolution but may advise on or determine the process where by resolution is attempted. The mediator may move between the parties who are located in different rooms, or meet at different times for all or part of the process.
   For more information see the Office of mediation advice website, or contact BuildR Dispute Services.
   

Owners/Developers

Prevention is better than a cure.

Signing a contract for building work is often the biggest decision most people will undertake in their life time. It can be a very perplexing time and it is reassuring when you have someone you can rely on to give you the right information when you need it.

From the initial consultation on the building process and knowing the options you will need to follow to checking that the contract covers your requirements and then the follow on through the building program, having expert advice on hand reduces stress that can lead to conflict. Get it right in the first place and keep it that way to the end.

Please see the information found on the Subscribe page.

Builders

You can't afford to develop your building business on the premise of relying on the school of hard knocks to teach you. Clients are more astute and are more prepared to go to battle if they believe you haven't complied with their expectations. Most of the older style builders learnt the hard way and progressed by learning by their mistakes. In today's complex and legislative driven business environment, getting it wrong can cost money and worse, the loss of time which could be better spent in productive pursuits rather than dealing with disgruntled clients.

Want to know more? Contact Trevor

Registered services would include updates and information on changes to government regulations and policy plus a telephone or email advisory service at no additional cost.

Time is money, and time spent looking for information in the legislative maze that regulates the building industry can generally be better spent in more productive pursuits like attending to the many demands you have to deal with throughout the day.

In other words Trevor will, through his knowledge and contacts, follow up any enquiries you may have by emailing the answers back and, where appropriate, supply documented confirmation.  

All you have to do is register so that we have an account set up for you when you need it. Cost is $110.00 per year. You will entitle you to our information service at no additional cost throughout the year.

Just click on contact us and fill out your particulars requesting registration.

You can either TT the $110.00 to:
BuildR Dispute Services
ANZ Account
BSB 014 690
Acc. 259581668

or mail to:
2 Glencoe St,  Rockhampton Qld 4700.

There will be an additional charge for submissions, claims or application under the BCIPA or to the Commercial and Consumer tribunal will be priced at $132.00 per hour. Although this service is primarily for builders, anyone can register and avail themselves of the service.