Delays and Extensions of Time

Throughout your build you may unfortunately face the prospect of your building period (the time under the contract that the project is due to be completed) being extended. The builder is entitled to claim extensions of time for most delays that are beyond the builder’s sole control and which were not foreseeable at the time of entering into the contract. Extensive wet weather is an excellent example of an event for which the builder may have to claim an extension of time.

No homeowner wants to see their construction delayed. However construction of a house can be uncertain and there are things that the builder simply cannot control. It is for this reason that all construction contracts will have a clause regarding delays and extensions of time.

Extension of Time Claim Forms

If you are presented with an Extension of Time Claim form by your builder then you are entitled to know what the claim is for. The form should set out the number of extra days being claimed and the reason for the claim. Some states will require that you put in a reason for the claim and also have supporting documentation such as Bureau of Meteorology printouts showing rainfall.

Responding to a Claim

If the delay is obviously outside of the control of the builder (such as weather) then it is recommended that you consider signing the Extension of Time Claim form; it seems unnecessary to have a dispute with your builder over something that they cannot control and to which they have a legitimate contractual right to claim. Most residential construction contracts will have a clause that states that the owner must not unreasonably refuse a request for an Extension of Time. However, if you disagree with the Extension of Time Claim form, then you will likely have to reply to the builder in writing setting out the reasons why.

The Cost of Unreasonable Refusals

The rental market at the moment is obviously very tight and there are a number of owners who are rejecting every Extension of Time Claim form as they want to be in their property as swiftly as possible. This approach will likely lead to disputes and additional expense if the matter must go to the Tribunal.

Maintaining a Good Relationship with Your Builder

The relationship with your builder is the most important relationship you will have as you undertake your construction project; often a conversation to clarify a situation is the best remedy. As owner you have a contractual duty to act reasonably; if your builder issues an Extension of Time claim then you should consider your response to this in a fair and moderate manner.