Contract Preparation And Review
Contract Preparation
If you are thinking about engaging a builder to undertake building work, or you are going to engage a subcontractor to do some work, then it makes sense to have a contract. That contract should include plans, specification, quotations and other documents needs to set out how those documents work with each other – e.g. which document has priority in the event of a clash between requirements in different documents.
If you are looking at undertaking residential building work, then you will need to have a written contract which complies with the law where you live.
There are suites of contracts prepared by Fair trading, MBA, Standards Australia and HIA – but those standard documents will not always cover the circumstances – e.g. if you are planning extensions to your existing property you may continue to live there while the work is completed. Most standard building contracts give possession of the site to the Builder and therefore those specific clauses will need to be amended to suit your circumstances and needs.
If you are a builder, then you may need to prepare your own contracts or subcontracts to reflect your specific needs.
Sterlings have extensive experience in preparing contracts for parties to building work. We have worked for developers, owners, contractors, subcontractors and suppliers and as a building consultant and have developed contracts for major developments through to small house extensions and kitchen installations.
Contract Review
Once a contract has been prepared by one party, the other party should read the document so they understand the rules of the game they are about to play ! Sometimes, the builder will prepare the contract for the works and issue it to the Body Corporate, or the strata management company. The rules that the builder is seeking to set for the game may heavily favour the builder and result in unfair circumstances and a poorly balanced document.
Where subcontractors quote for work to builders, they are often presented with a subcontract document after they have submitted their quote and therefore have not had the opportunity to review the rules for the game they are being asked to play. Often, the subcontract prepared by the builder is very heavily balanced in favour of the builder and attempt to pass all risk to the subcontractors.
Sterlings are often engaged by subcontractors, contractors and developers to read the proposed contract and to analyse and detail the risks that lie within that document and the attached plans and specifications.
As a result of our understanding of contracts and how they may be used to affect the game, we can assist you in negotiating terms in the proposed contract and rebalancing the risk profile that the contract represents.
