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Contract Extension Issue

Discussion in 'Legal Issues' started by alexm, 19th Mar, 2016.

  1. alexm

    alexm Well-Known Member

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    Hi all,

    To the legal people here, is there a regulator/ombudsman for building contract disputes in NSW?

    Our builder on a few of our construction projects is trying to charge an exorbitant figure for a contract extension. I've escalated this to one of their executives however i'd also like to investigate a possible Plan B.

    Any advice is appreciated.

    Thanks
    Al
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Fair trading is your go-to.

    • Why are they claiming eot?
    • Are there timeframes regarding notification and qualification of claims?
    • Are they legitimate?
    • Were they able to be mitigated?
    • Are they preconstruction eg council? or inclement weather, material availability, lack of decision-making on your part (or your consultants) for PCs or details?
    If all else fails, read the contract: clauses on variations, adjustment of pc sums and extensions of time.
     
  3. alexm

    alexm Well-Known Member

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    Location:
    Sydney
    @Scott No Mates , thanks for the head's up. Didn't think of Fair Trading.

    The builder is trying to charge a ridiculous amount as a contract extension (circa 7% of build costs) until the construction starts in a few months time. There is no established logic behind their calculations - simply reeks of profiteering.
     
  4. Scott No Mates

    Scott No Mates Well-Known Member

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    What formula are they using - NCAP2?

    There should be a formula for rise and fall if applicable.