Welcome to the December edition of the Doyles Construction Lawyers newsletter.
We hope you enjoy the articles.
Arbitration – a valuable option
Recently Jim Doyle acted for a contractor and who wished to collect the final payment of his project in Melbourne. A review of the contract revealed that disputes were to be settled by arbitration and this presented a quicker method of resolution than normal litigation.
The arbitration started with a Notice of Dispute in April 2015 and the arbitrator an experienced barrister was appointed by the nominating body. The parties filed their evidence by affidavit and cross-examination was available by way of a telephone conference. All of the interlocutory steps were completed in three months which is much quicker than normal litigation…
Read the full article here – Arbitration – a valuable option
5 Tips and Traps in Home Building Contracts For Owners in Victoria
You are required to enter into a major domestic building contract in Victoria, when the total cost is $5,000 or more and you carry out domestic building works which includes building; Repairs; Improvements; Maintenance; Demolition; and/or Removal.
Before you sign a domestic building contract, there are a number of things that you should check.
- Is the builder registered with the Building Practitioners Board (at the Victorian Building Authority)?
Note that only builders that are registered with the Victorian Builders Association can carry out major domestic building works and enter into major domestic building contracts. You can conduct a search on the Victorian Builders Association website, noting that the results of this search should exactly match the details contained in your domestic building contract and your Building Permit.
- Is there a domestic building insurance policy?
On a preliminary point note that it is only registered builders who can obtain insurance. Also you should be aware that if the cost of your domestic building works is $12,000 or more, your builder will need to obtain home warranty insurance and provide you with a copy of this policy and your domestic building contract will also need to include details about this.
Read the full article here – 5 Tips and Traps in Home Building Contracts For Owners in Victoria
Charges, winding up and the construction industry in NSW
In a recent decision of the Supreme Court of NSW, NSW Land and Housing Corp v DJ’s Home and Property Maintenance (In Liq) the Court considered:
- whether a payment withholding request under the Building and Construction Industry Security of Payment Act (the Security of Payment Act) constituted a charge over funds due to be paid by a principal contractor under a construction contract;
- whether a notice of claim under the Contractors Debts Act constituted an assignment of a debt due by the principal contractor; and
- the effect on any charge or assignment of debt of the voluntary winding up of the head contractor.
In addition, the Court summarised two essential features of a charge.
Read the full article here – Charges, winding up and the construction industry in NSW
Security of Payment – Construction Contracts WA
When entering into a contract for building and construction work it is important for all parties to understand what the process is if a dispute arises over payment of money under the contract.
Regardless of whether the contract is written or oral, if a dispute arises about payment there is a legislated process to resolve the dispute.
The process provides an effective rapid adjudication process for payment disputes. The rapid adjudication process helps individual parties and the industry with cash flow issues.
It will help you understand the process better if you know what the various terms mean and the steps and time limits involved in the process.
What is an adjudication?
Adjudication is when an experienced, registered and independent adjudicator is appointed to review a payment dispute, and if satisfied that some payment is due, make a binding determination for money to be paid.
Read the full article here – Security of Payment – Construction Contracts WA