Building Disputes

Building a new home can be exciting but also stressful. It can become challenging when there is a lack of communication between the builder and homeowner or between the homeowner and builder. 

The building trade has not yet fully recovered from the covid period. Many building projects current at the time of covid shutdowns were put on hold and delayed and the catch-up period which has followed has created shortages in availability of builders and tradesman. The cost of building materials has also increased significantly since 2022 and supplies of building material have been delayed and are only in the last three months or so returning to normal. 

During this period, both builders, tradesman and homeowners have been frustrated by delays, lack of material and ever-increasing cost. This has created a climate rife for potential disputes between builder and homeowners which can often be avoided or minimised by complying with the terms of most standard building contracts. 

Steps to avoid a dispute

Firstly, read and understand your building contract. The contract provides a framework within which the parties can and should communicate with one another on the following issues.

Variations 

Most contracts provide for a variation in price by the builder for prime cost and provisional sum items specified in the contract. Also, there may be a variation when the scope of works is changed usually at the request of the homeowner. Either the homeowner or the builder may ask for a variation, but the agreed variation must be in writing and signed by or on behalf of the builder and the homeowner together with the predicted plus or minus cost adjustment.

Extensions of time

The builder is entitled to reasonable extension of the building period due to variations in the  building work, adverse weather, delays in getting approvals and a number of other grounds specified in the contract. However, the builder is required to give the owner written notice of an entitlement to an extension of time detailing the cause of the delay and the proposed period of extension of time within ten days of becoming aware of both the cause and the extent of the delay. 

Dispute resolution

If there is a dispute between the builder and owner on the above or any other matter relating to the build, a standard contract has a dispute resolution clause whereby either the homeowner or the builder can give written notice to the other party setting out the matter in dispute and the parties must meet within ten working days to resolve the dispute or agree on methods of doing so. If agreement is reached, it must be written down and signed by both parties.

All too often these basic contractual responsibilities and rights of both parties are completely overlooked or ignored, often resulting in protracted litigation and expense. 

Both parties should work within the terms of the contract and if in doubt as to their contractual and legal obligations, should seek advice from a Solicitor experienced in this area of work. 

“Liability limited by a Scheme approved under the Professional Standards Legislation. This article does not constitute legal advice and provides general information only.”