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Posted 30 March 2011
Category: Building Defects
Owners corporations often enter into construction contracts with builders, architects, project managers, contract administrators and other contractors, dealing with a wide range of issues, such as adding to or altering the structures erected on the property, repairs and upgrade works.
These commonly involve large sums of money and deal with complex issues, e.g. those which arise in relation to fire safety works. Often, an owners corporation relies on its managing agent to deal with such issues, not appreciating that its managing agent is not in a position to provide legal advice in relation to the complex legal issues which arise from such contracts.
Construction contracts are generally negotiated using one of the construction industry standard contracts as a template, such as those published by Standards Australia, the Master Builders Association, the Housing Industry Association and NSW Fair Trading. Each of these has advantages and disadvantages, but all require some modification to deal properly with a range of legal and practical issues pertaining to strata schemes. For example:
It should be noted that many short form contracts are not suitable as they do not comply with the requirements for residential building works under the Home Building Act 1989.
Bannermans Lawyers has extensive experience in this area and would welcome the opportunity to assist owners corporations and their managing agents with negotiating and preparing such contracts and providing them with guidance as to the issues involved and how they may best be addressed, so as to ensure that owners corporations are given proper protection.
***The information contained in this article is general information only and not legal advice. The currency, accuracy and completeness of this article (and its contents) should be checked by obtaining independent legal advice before you take any action or otherwise rely upon its contents in any way.