Plumbing Connection Summer 2017

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8 6 PLUMBING CONNECTION Summer 2017
The arguably most critical
requirement is that the contractor’s or
builder’s work complies with the law.
Finally, the work should be carried
out by the promised due date. Though
this duty is not often explicitly stated
in the law (although it is in Victoria in
the Domestic Building Contracts Act)
it is related to the critical element of
time. It is also usually the subject of a
clause in the contract where there are
a specified number of days by which the
works must reach practical completion
or substantial completion.
It is specified in the contract what
the consequences are if this date is
not achieved. Liquidated damages
may be payable, based on the number
of days past the due date the works
are complete is an example. A set
rate is usually set, such as $250 per
week. There are exceptions to this
requirement for the builder to pay such
damages, broadly based on factors
outside the builder’s control.
Mention should be made of the
important topic of certification of
works. Certification of works can be
implied or actual - usually written,
but it can be verbal.
The builder can be
entitled to final
payment claims
based on an implied
written statement
from the architect or
inspector.
The most
common examples
of documentation
are final and
practical completion
certificates. Often,
a building contract
says that a certificate from an architect
is required to indicate that the architect
is satisfied that the works carried
out are satisfactory in relation to the
contract. In general, the certificates
referred to in this article are conclusive
with respect to compliance of the duties
or standards but this can depend on
what the contract stipulates.
Final certificates are usually issued
at the end of the
defects period.
However if there are
defective works,
an owner can still
usually, despite
the certificate,
claim damages.
As in all cases, it
is the contract
and its wording
which governs the
conclusiveness or
otherwise of a final
certificate.
Due to the often discrete and
technical aspects of this area, it is
strongly recommended that if you are
faced with allegations that you have
done work of sub-standard quality, you
seek professional advice.
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Building
standards apply
whether or not
thay are written
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even referred to in
the contract
LEGAL EAGLE