Hi, Cameron here from OMB Solicitors, I just want to have a quick chat to you about building contracts. At the moment, building contracts are the hot topic because a lot of builders are struggling.
So before entering into a building contract, if you are either having a place built or you’re developing a property, I would suggest you come and see a solicitor.
Some of the recent developments include, there’s a lot of talk around cost escalation clauses in the building contracts now, that is to help cover the increase of materials and labour that has come lately due to COVID and other stresses on the market.
Another clause that’s often creeping in now is that in respect to delay damages, what that means is sometimes clauses are inserted to cover the costs of when the building can’t proceed for matters that are outside the control of both the builder and the customer.
The final one that I see coming in a lot lately are limitation on liability clauses, which attempt to reduce the liability of the builder for the construction process and beyond.
So, it’s very important that if you’re either looking to build or looking to build for someone, that you come and see a solicitor to help draft the building contract so it can protect you in respect to both all of those options and anything else.