Terminating HIA Building Contract

Hi guys,

My parents are building two townhouses in Melbourne (at underground plumbing stage so still early) and recently came to know that the builder is having some serious cash flow issues and actually have no money to pay their plumber so works can't continue. He has been paying his plumbers late and they (plumbers) are demanding him to pay for the whole project into their lawyer trust account first (plumbers will draw from there when done is done) before they continue as they can't trust him.

The builder approached my parents asking for advance payment verbally so he can pay them first so works can continue else it will be held up until he has money. What are their rights in this? Sounds pretty ridiculous. Just one delay after another due to his cash flow issues.

My parents are tempted to just look for another builder to continue the works.

 

Their rights are as per the HIA Contract

Item 15 part
(b)if the builder shall make an assignment for the benefit of or enter into any composition with his creditors or go into liquidation (whether voluntary or compulsory except for the purpose of reconstruction or amalgamation) or commit an act of bankruptcy or have a receiver appointed or if a sequestration order is made against the Builders estate.
(c) if the builder shall without reasonable cause wholly suspend the works before practical completion.

 

Thanks Boeman. Can't seem to find it in our contract bit odd.