• Building and Construction Law •

A building contract is an important document that governs the right of the owner and the builder detailing the terms and conditions. It should not be entered into without detailed consultation with a solicitor and, if necessary, other professional advisors such as an architect or building consultant.

If you have a building problem it is important to contact us as soon as possible, so that we can organise a meeting with you to discuss the legal issues, clarify the procedure involved and take particulars for your file.

We organize a Service and Cost Agreement which outlines cost, procedure and our commitment to you in the way of expert advice and great service as well as your authority for us to act on your behalf.

Prior to entering into a Contract, approved plans should be prepared in accordance with local council requirements and all governing State laws and a quotation for construction is obtained from the builder. The plans will require approval from the local council and a Construction Certificate.

The Contract should be in a form approved by a building association like the Housing Industry Association or an associated professional body for example the Institute of Architects.

All matter should be included in writing in the Contract and signed by both parties.

The Contract should provide for the type of construction intended including whether it is a fixed price contract or a cost plus contract and should provide provision for determining the amounts.

Other issues that should be covered in the Contract are the period of time the construction is intended to take, whether there is any provision for penalty if the contract exceeds the allowed time, the stages of construction at which progress payments will be made and any special conditions.

The detailed quotation and approved plans should form annexure to the Contract and therefore be part of the Contract.

The Contract should specifically provide for the determination of disputes by alternative dispute resolution, for example mediation and the procedure for this to take place.

In the event of a dispute over commercial constructions there are a number of opportunities for mediation or arbitration, for example the Australian Commercial Disputes Centre.

In the event of a dispute in New South Wales for residential property the CTTT has jurisdiction for residential building contracts up to $500,000.00.

Alternatively, the State Courts, being the Local Court, District Court and Supreme Court and the Land and Environment Court provide jurisdiction with regard to certain disputes, however, legal costs are a significant issue in these situations.

In matters where the full scope of the work you ask us to attend to is not known at the outset, we will charge on an hourly basis. We have chosen a minimum three-minute unit of time as a commercially practical unit, given that serving you properly involves us making notes of even short activities, filing and recording details.

If you would like us to assist you, or you require further information,
call us on 4969 1800 to make an appointment.


Elsworthy Solicitors • Serving the Newcastle & Hunter Region
Unit 1/1 Kenrick St • PO Box 199 • The Junction, NSW, 2291 Australia • ABN 79 019 337 040
ph (02) 4969 1800 • fax (02) 4969 1394 • DX 7864 Newcastle • email
© Elsworthy Solicitors 2008 - Newcastle Web Site Design by Net Perceptions