Each year, thousands of Western Australians take the exciting step of building a new home. Under usual market conditions, the vast majority of these projects go smoothly and families move into their new residences as expected.
However, because the building industry relies on multiple and sometimes unpredictable factors – different products, trades, supply chains and timeframes – it can be affected by disruptions near and far, including fuel price volatility.
In almost all cases, you and the builder will have the same goal of managing the challenges and completing your project in a timely and cost-effective way. Clear and cordial communication is key as an agreement between parties is often the best way to ensure projects are completed with minimal loss or disruption for everyone involved.
If you are facing delays or increased costs to your building or renovation project, advice is available from our colleagues at the State’s building regulator, the Building and Energy division of the Department of Local Government, Industry Regulation and Safety.
Timeframes for completion of building work are generally set out in each contract. If an extension of time is sought, the builder needs to specify the reasons and confirm the relevant contractual clause.
You can lodge a home building work contract complaint with Building and Energy if you believe a delay or price increase is unjustified.
The Home Building Contracts Act 1991 sets out limited circumstances when a builder can increase the price of a fixed-price contract for home building work valued between $7,500 and $500,000, without the owner’s consent.
This includes work not commencing 45 days or more after the contract date if the delay is due to a situation beyond either the builder or owner’s control, or due solely to the owner’s failure to comply with a condition imposed under the contract.
While terminating a building contract is an option, it is worth remembering that you may have to pay the builder for legitimate expenses or damages.
Useful resources on building or renovating your home, including updated fact sheets on price increases and other building challenges, are available at www.lgirs.wa.gov.au or you can phone the Building and Energy team on 1300 489 099.