Claim extensions of time under building contracts

MBA encourages all members to ensure that they are making claims for extensions of time under building contracts correctly. An extension of time may be claimed by the builder under a contract for a variety of reasons such as for carrying out variations, inclement weather, suspension of works due to non-payment, or where there is a delay outside of the control of the party making the claim.

For members who use the MBA ACT Lump Sum Residential Building Contract (2024 version), they are allowed to claim a reasonable extension of time if the building work is delayed by:

1. variation;
2. suspension under the contract;
3. inclement weather, including the consequential effects such as inaccessibility to the site;
4. proceedings taken by, or disputes with neighbouring owners or residents;
5. civil commotion or industrial disputes affecting any of the trades employed on the building work or supply of material for the building work; or
6. any act, default or omission on the part of the owner; or
7. anything else beyond the control of the builder, such as, but not limited to trade contractor shortages or material shortages which affect the builder’s ability to do the works.

For an extension of time to be valid, the builder must serve a notice on the owner within 20 business days of the delay occurring. The notice must identify the extended Construction Period and the extended Date for Practical Completion.

If you need any advice in relation to contracts, please reach out to our Workplace Relations and Legal Team on (02) 6175 5900.