19/10/2022
*Building Contract Tips and Tricks* - When did Construction Commence?
In this series of posts, we will share the common oversights of Domestic Building Contracts and how to mitigate them.
Whenever clients or friends have been concerned with progress and how their Build or Development is tracking the first question we ask is "When did Construction commence?"
A pretty simple question but often goes unanswered until well into the build if the Commencement Notice hasn't been provided or contains the inappropriate information.
Did you know in the Master Builders Contract is actually a requirement for the Builder to provide one?
Clause 8.2 of the Master Builders Contract states the following:
Within seven (7) days after having commenced to construct the Works, the Builder must give a
written notice to the Owner. The notice must state the following:
- The Builder has commenced construction of the Works under the Contract; AND
-The date on which construction of the Works commenced (the actual commencement date) ;
AND
- The Construction Period (as set out in item 9.2 K of the Appendix) started to run on that
actual commencement date; AND
- The Completion Date, having regard to the actual commencement date and the
Construction Period.
This letter can also assist if an 'Extension of Time' or a 'Suspension of Works' is requested as well as providing clear milestones for the start and finish of a build.
Disclaimer: Guidance only, not a substitute for legal advice.
