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
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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.

hia building contract delays
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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.

hia delay and extension time clause
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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

Navigating Construction Delays with Home Building App (HBA)

Construction delays can lead to significant disputes and complexities under the HIA NSW Residential Building Contract. HBA, your ultimate information hub, provides homeowners with the tools and information needed to effectively manage these delays, ensuring a smoother construction process.

Simplifying Delay Management in Construction

  • Effective Communication: Utilise HBA’s communication tools to handle extensions of time and negotiate delays transparently with your builder.
  • Document Organisation: Keep track of all document such as notices, and supporting documents in an organised manner, aiding in the resolution of disputes.
  • Risk Management: Manage and monitor the progress of your construction project, reducing the risk of disputes arising from 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
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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.

HIA Building Contract Delay Advice

How We Can Help

Facing construction delays and feeling uncertain about your next steps? At Contracts Specialist, we understand the intricacies of delays under the HIA Building Contract. I am a solicitor and construction lawyer with over a decade of experience specialising in construction law. Throughout my career, I’ve consistently advised homeowners in NSW, Australia, about their contractual and legal rights. My expertise extends to representing homeowners in all courts of competent jurisdiction. I’ve provided guidance on delays under the HIA Building Contract, helping homeowners understand their contract rights, risks, and obligations, and have even negotiated and amended contracts to align with their intentions.

HIA Contract Review Lawyer

Don’t navigate these complexities alone. Reach out for tailored advice by emailing us or organise a call with our dedicated construction lawyer. Let’s ensure your rights are protected and your intentions are clearly reflected in your contracts.