Advice on Building Delays and Liquidated Damages

For 25 years we have provided advice on all building contracts and sub-contracts and on building contract and sub-contracts disputes including payment claims, disputes over variations, Construction Contract Act claims, disputes over delays in building works and claims over defective works and appearances in all courts.

A domestic building contract needs to be clear and contain a definite completion date for each stage of the building work.

More often than not, no fixed date is stated but instead the completion date is stated in the number of days.

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. 

When entering into a building contract the Owner should consider the amount allowed for liquidated damages within the contract. If the building work is delayed, which happens all too often, then the Owner will incur additional costs with respect to interest being paid on building finance and/or accommodation prior to completion.  The amount allowed for liquidated damages should take into consideration these costs.

It is vital that both the Builder and Owner monitor the progress of the building work vigilantly. If the building schedule falls behind, an experienced solicitor can intervene and work with both parties to get the construction schedule back on track or alternatively work to revise the schedule to take into account unanticipated circumstances.

In practice it appears that if any amount is awarded by the Tribunal and an allowance is made pursuant to a domestic building contract for liquidated damages, then the amount awarded will rarely exceed the liquidated damages amount.

Contact us today and we can advise you on Building Delays and Liquidated Damages.