HIA NSW Building Contract
For illustration purposes only.

Delay in Home Building

There is delay when construction takes longer than the period agreed upon in your contract. In the HIA contract, the Building Period and Practical Completion state the duration within which the home building project should take, and the date when it should reach practical completion, respectively.

HIA NSW Building Period Clause
For illustration purposes only.
HIA NSW Contract Clause 12
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HIA Building Contract Practical Completion Clause NSW
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Additionally, the HIA contract sets out the Statutory Warranties that require a Builder to finish construction by the date agreed upon, or within a reasonable time.

For illustration purposes only.
Statutory Warranty and Mandatory Conditions Clauses in HIA Contract
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Which HIA Clauses Deal with Delay?

Aside from those mentioned above, the clause on Extension of Time and Liquidated Damages deal with delay.

A Notice of Extension of time is required to be given by the Builder if they foresee that construction will be delayed. If the Home Owner approves, the delay will be allowed and will not give rise to dispute.

For illustration purposes only.
Extension of Time Clause in HIA NSW Contract
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On the other hand, if no Notice is give, or if the delay is made without the Home Owner’s consent, the Builder will be considered to be in default, and will be liable to pay Liquidated Damages.

Liquidated Damages Clause HIA NSW Building Contract
For illustration purposes only.

When is There Delay?

There is delay when construction fails to reach practical completion by the date written in the contract. However, not every delay renders the Builder liable for damages, as for example, when the delay is covered by a Notice for Extension of Time.

When Delay Turns to Dispute

Delay turns into a building dispute if the delay is not covered by a Notice for Extension of Time, or when the delay is unreasonable.

How to Settle Dispute from Construction Delays

The HIA contract allows you to terminate the contract for breach.

Breach of HIA Contract Clause
For illustration purposes only.

The HIA contract also sets out the procedure for dispute resolution, should you elect the same.

Dispute Resolution Clause in HIA Contract
For illustration purposes only.

If after undergoing the above, the dispute remains unresolved, you have recourse with the Office of Fair Trading, the NCAT, and the courts – in that order.

How We Can Help

Contracts Specialist is a Construction Law firm with over ten years experience, and within that time, has cultivated the necessary expertise and skill set to help you in matters involving residential building contracts and building disputes.