COVID-19 and Home Building Contracts

The impact of COVID continues to have a profound impact on delays and prices in the building industry. Members are encouraged to speak to their clients early about any issues they are facing.

Members should do the following where possible:

1. Use a cost-plus contract.

2. Where a fixed price contract is being used:

a) check with your suppliers as to their current costs and any anticipated increases during the construction period and allow for these increases in your contract price;
b) accurately quote the job at the time it is being signed;
c) order materials early;
d) use prime cost and provision sum allowances for items which you anticipate will rise;
e) do not enter into a contract with a commencement date too far into the future; and
f) allow for extra time in the construction period for material and trade delays.

3. Check your contract for the appropriate clause that deals with delays and extensions of time and ensure extension of time notices are being issued for any delays.

4. Review your current contracts to see if you are entitled to pass on prices increases to the Owner or if these are costs which you cannot pass on to the owner.