Lump Sum Home Building Contracts

Monday, September 20, 2021

Since the introduction of the Federal HomeBuilder and WA Building Bonus grants, there have been issues relating to delays in the construction process and claimed increases in builders’ costs, which we have seen builders look to pass on to owners under their building contracts.

Whilst the widely used Lump Sum Building Contract specifies a price for home construction, there are clauses that allow builders to increase the so-called ‘lump sum’ price in specific circumstances.

Owners are often unaware of these price increase clauses, their rights, and the process to dispute a price increase notice from the builder. If owners want legal advice on disputing a price increase notice they should seek that advice urgently, as there are strict time limits for the dispute process.

Our practice is located outside of the Perth CBD and because of this our hourly rates and fixed prices for commercial work and for litigation are 20% lower than the standard rates charged by most Perth law firms.  Our rates are extremely competitive compared to the rates charged by other commercial law firms. 

As Perth construction lawyers we specialise in all building and construction contract advice, dispute resolution and litigation matters. Our clients include building and construction companies, mining services companies, property developers, contractors, subcontractors, civil contractors and suppliers in a variety of building and construction disputes.  We also act for customers of builders.

To read more on Building Contracts click here and here.  Department of Mines, Industry Regulation and Safety have also issued a helpful guide - read here.

 

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