A development agreement is a contract between a developer and a builder. The development agreement may also incorporate another party or envisage that a third party or a contractor may be retained by a builder. The development agreement contract will naturally stipulate the rights, liabilities, obligations, duties of each party, including but not limited to the completion of the project and the manner in which work is carried out. Payment provisions will outline when and how payments are affected by the project developer. These may be subject to inspection requirements or rights to access the site and view the progress of the work. Disputes concerning development contracts may arise from the allegation that a payment has not been made to the builder, or where the developer is not satisfied with some aspect of the construction process.
Other components of a development agreement will address issues relating to indemnities and warranties which are declared by the builder in respect of his work and the work of any contractor or subcontractor. These are important to safeguard the interests of the developer. Conversely, there may be specific conditions and terms in the development agreement that assist in the protection of the builder’s interests. These matters can only be determined by a careful and detailed inspection of the provisions of the development agreement by a property development solicitor. The contract will need to be inspected against any evidentiary materials that substantiate any allegations or claims being made against a party. Only after this investigative process is completed will the property development lawyer be in position to offer legal advice to the client.
Litigation over disputed development agreements can occur in both residential and commercial developments. The general laws of contract interpretation will necessarily apply but these can also be affected by industry specific expectations or policies as well as statutory provisions that govern the manner in which the development is to proceed. A party may be contemplating the filing and service of a Statement of Claim or a Summons, or a party may be in need to legal assistance in preparing a Defence to a claim in the context of a development contract dispute. Whether a party to the development dispute is the builder, a contractor dealing with the builder, or the developer himself, it is important to assess precisely what the real issues in dispute are before taking action.
Of course, a development contract litigator may also be of considerable help in reviewing a proposed agreement and offering advice in relation to its terms and conditions. Some terms may be oppressive or unfair; others may need amendment so they firmly secure a party’s rights. Contracts of this nature should ordinarily be reviewed by an experienced development agreement litigator before they are entered into by either party. A lawyer who deals in the building and construction industry may also be in a position to draft and settle a contract on part of a developer who is contemplating the acquisition of property for the purposes of investment and development. The precise nature of the intended project will need to be outlined so that the contract reflects exactly what is needed. After such a contact is finalised and put to the other side, a process of negotiations may follow in the event that the other side desires certain amendments.
If you wish to discuss any of the above matters in further detail, you can contact our firm to organise a meeting. Please call (02) 9233 4048 or send an email to info@navado.com.au.
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.
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