Reminder: Claiming Delays and Extension of Time

Members are reminded to claim delays and extensions of time under the contract during the construction where a delay occurs. Members should check their contracts in determining what delays can be claimed and follow the procedures set out for claiming an extension of time. Failure to claim a delay in accordance with the procedures prescribed in the contract may result in you being liable to pay the owner liquidated damages.

For members who use the MBA Home Building Contract, clause 13 allows the builder to claim a reasonable extension of time if the building work is delayed by:

• variation;
• suspension under the contract;
• inclement weather, including the consequential effects such as inaccessibility to the site;
• proceedings taken by, or disputes with neighbouring owners or residents;
• industrial disputes affecting any of the trades employed on the building work or supply of material for the building work; or
• anything else beyond the control of the builder.

For an extension of time to be valid, the builder must serve a notice on the owner within 5 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 building contracts, please reach out to our Workplace Relations and Legal Team on (02) 6175 5900.