(QLD) is this reasonable delay?

Hi all,


Seeking your expert advice here, I have a building construction contract that started on October 2021, and the deadline was May 2022. However until now there are only few trenches and not even a slab yet. Builder is extending the contract to February 2023 due to the current market condition. Is this reasonable delay? does it really take 1.5 years to build a house in QLD now ?

 

No, probably requesting a large extension to cover themselves.
It has been raining a lot up here, many rain delays for builders for months.
Be thankful they haven't increased your contract price.
Many builders struggling to complete builds at the existing contract price and or on time due to supply cost increases, labour costs increases, supply issues, rain delays and shortage of trades.

 

Might also be time to do a deep dive on the company, just to see if there's any bad reviews/gossip about them going under !

 

What is the basis & method for claiming an extension of time?

Check the wet weather calendar on the HIA or Master Builder's website for wet days

Have they also hit you with eot costs?

A 10 month eot claim on an eight months contract? Tell them they're dreaming.

 

I’m a Quantity Surveyor and do the Progress Payments for clients getting new houses built all the time.
I’m also in Brisbane.
On the face of it this notification of delay seems ‘late’ as typical Master Builders/HIA contracts have built in deadlines to meet xyz stages of the build. And they should have told you about the intended delay in January. Not May.

But…

I’m working on 3 houses (Gold Coast, Brisbane) atm and all have run over the practical completion date by at least 6-months.

Some delays due to materials shortages
Some due to COVID delaying crews getting onsite to do their thing.
Some delays due to inclement weather.

You will also have liquidated damages noted in your contract.
typically a house is $50/day over the completion date.
You may be able to at least claim that cost back from the builder.

Happy to talk more about it with you though.

Some builders are walking a fine line with finance/cash flow atm and everyone (builder, subbies, client, financier) all need to have understanding and flexibility.

The very WORST thing that can happen to you is the builder going bankrupt mid-build.

 

Another complication in Brisbane is the thousands of houses damaged in the February floods putting more demands on materials and tradies.

Two friends looking at building are being quoted build times of around 18 months.

 

The basis noted in the extension is very generic: due to unforeseen weather, pandemic, material and worker shortages beyond builders control

There is no details such as "it was raining for 150 out of 192 days allocated for the build"

 

Thanks! Will direct message you tonight!

 

Hi Will, sorry I did not realize the forum rules have changed and I am no longer able to do direct message because my posting count is too low, do you have an email address? thanks

 

any idea how to deep dive? I can only google search and nothing much from there

 

Google is a start, also look into suppliers of/to said company...
Social media can also be good, because if the company is turning you probably are not the only person being mucked around !
@Scott No Mates might have other suggestions

I remember a company I long ago worked for replaced all their company vehicles, they sold the old ones to cash up the business and all the new one's were leased, 4 months later I was unemployed
The signs are there is you know what to look for

 

Will,

just curious are many builders being charged delay costs by the owners where they are a few months late on completion of the build ?


Thanks

 

I've been watching 2 builds across the road from me, both are small double story townhouses, one got up to 90% complete 3 months ago, and the second is up to the same stage in the past 3 months. Another friend has been caught up with the bankrupt builders and has only gotten to the roof stage in just over a year.

 

Thanks

just wanting to know are owners charging builders delay costs in current environment when they are late to finish ?

 

Sorry to hear about your story, I know it is painful and costly for some but a lot of builders are on the edge of bankruptcy, you're lucky to even have them finish your house off in this climate rather than them taking the easy way out and folding. The person that I know that has waited for over a year has been stuck paying $500 a week in rent and they're in the retirement stage of their life, it was either wait this long or not have the house built at all.

 

Hi,

I've not come across any (yet).
Things are so precarious atm with so many builders on the edge of collapse, that most clients seem to realise the builders need all the help they can get to get the project across the finish line.

There's also a lot of builders wearing the costs of the price increases of many tens of thousands of dollars. SO it would be a bit rich for a client to hit them up for a few thousand$ in liquidated damages.