Builders however, have legitimate interests and as the contract proceeds, the builder will become vulnerable by investing a significant part of his working capital in the building project. In doing so, the builder is trusting the owners will pay him the agreed price for the contracted work.
Unfortunately, there are owners who will try to avoid paying the full price of their building contracts. The builder should protect his right to payment by:
- fully documenting the building contract including all plans, specifications inclusions and PC items. The contract should
contain all essential conditions and be signed by all parties.
- fully documenting all variations and their likely costs in writing and having that document signed by the parties before any work is performed on the variation. This will clarify any confusion before the work is commenced;
- making claims in writing for all properly available extensions of the contract term, immediately they occur. The general practice of seeking to catch up the time at the end of the project should not be adopted;
- keeping a project day diary of events, worked carried out and conversations; and
- immediately suspending the contract works, the moment the owners stop paying or start underpaying progress claims.
By doing these simple things will potentially save a builder or contractor much grief as it severely limits the owner’s opportunities for mischief at a later time.
At Everingham Solomons we have the expertise to guide you with all of your legal matters because Helping You is Our Business.
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