Trade/material delays & cost increases

How to manage delays and shortages

The reality is that cost increases and delays are unavoidable and will need to be factored into build contracts.

Do not enter into contracts without a clear understanding of what you are agreeing to do under that contract and without ensuring that you can deliver what you are agreeing to do. It is important that you can commit to the terms of your contract in light of the trade and material shortages and cost increases.

Where contracts have already been signed, we urge contractors to work closely with their clients to discuss alternative timeframes and contract variations if necessary. Timely and open communication with the client is often the easiest way to avoid a dispute.

It is only in certain limited circumstances that you will be entitled to an extension of time to the Date for Practical Completion under the terms of your contract. This is also restricted by legislation in Schedule 1B of the Queensland Building and Construction Commission Act 1991.

Some builders have sought to include special conditions, provisional sums or more frequent progress payments in their contracts to deal with the problem; however, some have had those contracts rejected by mortgage lenders. These provisions may also not be legally enforceable because you are required by legislation to ensure that you have certainty in domestic building contracts with very few exceptions.

The Queensland Building and Construction Commission (QBCC) has recognised the problem and is providing both advice and access to an Accelerated Builder/Consumers Dispute Framework.