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