How to check inclusions and exclusions in building contracts?
A common issue for home building clients is finding out midway through a build that particular bits of work have been excluded from the builders scope of work.
When this happens, like it or not, the Building Contract is the single source of truth when it comes to settling a dispute with the builder. Commonly when the time comes to settle an issue, clients find out the contract doesn’t quite capture the scope of work they expected.
Here are my top tips for making sure the building works you expect are in the contract:
Read the Builders Specification
Ensure you are across any inclusions / exclusions written into the Specifications. When I review clients contracts, allot of my effort is put towards aligning the Contract Particulars with the Builders Specifications to avoid ambiguity and disputes during construction).
Reference all important documents
Drawings, schedules, specifications and important emails should all be expressly mentioned in the Contract. HIA has a great section called ‘Other Contract Documents’ for these to be referenced.
Review Authority Connection Roles & Responsibilities
The particulars of your contract outline who is responsible for Electricity, Water, Gas connections works and fees. Often owner’s are responsible for the fees associated with connection works, so make sure you are aware of costs that you will need to cover.
Describe the project objectives
Where a description of work is requested in the Contract Particulars, check it adequately describes the whole project. This will help backup any ‘intended purpose’ and ‘warranty’ clauses throughout your contract.
Describe the project objectives
Where a description of work is requested in the Contract Particulars, check the entry adequately describes your whole project. E.g Two storey house, with Landscaping, Driveway and Fencing. This will help backup any ‘intended purpose’ and ‘warranty’ clauses throughout your contract.
Even if your contract is standard, hidden exclusions can be hiding in there. If you want help understanding your contract and peace of mind that the terms are reasonable, send me an email at hello@buildtogetherpm.com.au, I’d love to chat about how I can help!
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Written by Annelyse, Building Contract Enthusiast, Project Manager, and founder of Build Together Project Management.
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