In Osborn v Buildrite (Qld) Pty Ltd [2005] QCAT 552, the QCAT was required to make a decision about three (3) very common issues that arise in domestic building disputes:
- The impact of variations that were not documented;
- whether writing ‘NA’ next to the ‘liquidated damages’ clause meant the homeowner was excluded from claiming liquidated damages altogether; and
- what impact no extension of time requests have on claiming delay caused by the homeowner.
Variations
In this case, the contract plans provided that the builder was required to construct raked ceilings. The builder argued that the parties had varied the work to change the ceiling. However, there was no documented evidence of this. The Tribunal awarded damages to the homeowner for the cost of removing the ceiling and building it as per the contract plans.
Liquidated Damages – ‘NA’
The homeowner claimed damages for late completion of the build by the builder. The builder relied on there being no ‘liquidated damages’ by reason of writing ‘NA’ next to the relevant clause of the contract. The Tribunal rejected the argument that no damages could be claimed by the homeowner for late completion where the parties had written ‘NA’ next to the liquidated damages clause under the contract.
EOT’s
The Builder claimed that the homeowner caused / contributed to the delay in completion of the build. The Tribunal found that there was a mechanism for dealing with extension of time claims under the contract, which was not followed and therefore, time was not extended under the contract.
The above is a short summary of issues we regularly see occurring in disputes between homeowners and builders and highlights the importance of understanding your contract as well as administrating them properly.
If you need legal advice about how to properly administer your contracts to avoid these types of disputes or if you are involved in a legal dispute that you need help resolving, contact us today!
This is general information only and does not constitute legal advice.
If you or someone you know would like more information or require advice about anything raised in this article, please contact us on (07) 2146 2995 or email mklein@kleinlegal.com.au