Breach of Contract:

Breach of contract may be a cause of action pursued by a builder or the owner of a home which is being built. A building contract, after it has been validly entered into, will outline various rights, liabilities, duties and responsibilities of both the builder and the owner. These may include the following:

• Compliance with Architectural and Engineering plans;
• The time for the construction to take place;
• The materials to be used in the construction;
• Compliance with legal requirements including:
  • Statutory;
  • Regulatory;
  • Council rules and ordinances;
  • Industry standards;
  • The fixtures and furnishings, their quality and type;
  • Installation of electrical devices, their quality and type;
  • Periodical and staged inspections of the property during construction;
  • The systems used in the installation of windows and doors;
  • Waterproofing substances used;
  • Soundproofing substances used;
  • Rectification of defects; and
  • Payment of progress payments.

A building contract can be a voluminous document with many appendixes, annexures and related documents which taken together, form the agreement between the parties. An allegation of breach of a building contract, will need to be established by:

(a)    Establishing the duty where the beach has been alleged; and

(b)   Adducing evidence of the breach.

Rectification, damages or compensation may be claimed by a successful party, for example where the prospective owner requires that a certain material be used, but which has been substituted for a cheaper or inferior substance. Likewise, specific performance for the payment of progress payments can be pursued by a builder who is not paid on time. Usually a failure to pay may be connected to the owner’s belief that something has not been completed according to the building contract. Likewise, often there is a clause in the building contract that allows a builder to substitute for materials that may no longer be available on the market or which cannot be used for some other legitimate reason. Thorough and detailed advice from a Construction Lawyer can be immensely useful in this regard.

Essentially, where an owner is thinking of suing a builder, or where a builder is thinking of suing an owner for breach of the building contract, all the factual matters will first need to be investigated in light of the building contract itself. It is useful to create a chronology of events and a schedule of duties and liabilities so that the facts of the matter can be clearly articulated before any formal legal action is taken. A Building Contracts Solicitor will assess these matters first before providing a letter of legal advice to his client. On the basis of this legal advice, the building contracts lawyer will then take instruction from the client in relation to steps which may be taken to resolve the matter.

If you require assistance with a breach of contract dispute in your building and construction matter you may wish to contact our firm by telephone on (02) 9233 4048 or email to info@navado.com.au and make an appointment to see one of our solicitors. 

This webpage (and any material or wording appearing on this webpage) is provided for general information purposes only and does not constitute any Legal Advice. It does not take into account your objectives, your instructions or all of the relevant facts and/or circumstances. Navado accepts no responsibility to any person who relies on the information provided on this website. We further refer you to our Disclaimer.