13/09/2016, 12:28:PM
13/09/2016, 12:28:PM
Building Contract – Implied Terms!
Under the Domestic Building Contracts Act 1995 (Vic) there are implied terms into every contract that is entered into for renovation or building from start.
Some of these implied terms include:
1. That the builder will complete the work in a proper and workmanlike manner. This implied term in the contract, cannot be excluded from the agreement.
2. That the materials used will be of good quality and reasonably fit for their purpose for which they are to be used, unless the contract excludes such warranty. In relation to materials used there are two implied warranties, a warranty for quality and warranty for fitness; and warranty will also apply for latent defects in materials.
3. That there is a best endeavours warranty that the works will be completed to a certain result, which is normally the result stipulated in the contract, with best endeavours being determined by reasonableness in the circumstance.
4. That the builder will comply with the building regulations.
5. That if there is a time frame stipulated in the contract, it will be implied that the builder will complete the works in a reasonable time under the contract.
Building contracts whether they be for architectural or engineering drawings, or with a builder, all have implied terms. The issues that generally result in disputes with such contracts is whether each party understood their obligations under the agreement.
Disputes commonly arise when there are misunderstandings as to the scope of the work with contract terms, or variations occur which a not properly recorded in writing, or professional and trades work is not completed in a workmanlike manner and being fit and proper for its purpose.
Ideally, nobody wants to litigate against another person or company, as it is time consuming and costly in seeking a result. The best solution to avoid disputes is to have a very clear understanding from the start before you sign that contract, and if you are not a professional in the field, or if you need a second opinion, get it, as the initial cost for that advice will far out way pursuing a claim or being sued.
So before you sign that contract, take a moment, and get that legal advice to protect your legal rights & interests.
The comments in the aforementioned do not constitute legal advice and are general in nature, and if legal advice is required please contact: John Melis at Legal AU Pty Ltd (03) 9999 7799
Legal AU Pty Ltd Lawyers are “Liability limited by a Scheme approved under Professional Standards Legislation.”
