BUILDING DISPUTES - HOW DID WE GET THERE?

It happens more than you’d think…

Hoping to save some money on GST or Home Warranty Insurance, you undertake a large renovation without signing a contract for the work you’re getting done.

Not wanting to offend or test the relationship, you don’t check tradies’ licenses are current or insurances are up to date.

Someone hits you with the handshake and you trust them…besides you’ve already gone this far.

When reality hits, it can be pretty harsh.

Someone has to be responsible for the works carried out to your property, and if you don’t have a contract with your builder (or your builder is un-licensed and un-insured), you’re effectively an owner builder. Even if you don’t know you are.

Contracts exist to protect both parties, assign responsibility and prevent misunderstanding in the future.

When the quote is prepared, you, as the client get a chance to make changes and prepare for upcoming fixed costs. As the builder, we get the opportunity to outline the scope of works, progress payments and timelines.

If there’s no contract in the first place, it makes it very difficult to hold anyone to account on either side. The job can mysteriously “grow”, costs can blow out for no reason, there’s no insurance if something goes wrong, the builder may never get paid, or the time frame can drag on and on, who knows why? It doesn’t work out well for anyone!

Don’t fall prey to the old “she’ll be right, mate” attitude. Saving 10% on the GST is no compensation for a poorly done job or one that ended up costing 20% more in cost blow-outs anyway. 

Or you end up in dispute, you end up at NCAT or QCAT or at your solicitors. By the time we’re carrying out a defect report on your behalf, it’s usually past the point of negotiation. Maybe mediation will save you but a lot of this could have been prevented.

Make sure you engage a reputable licensed contract builder and get it all in writing!

Check out our eariler blog from February 13th - How to pick your builder.