Well-understood Contract Is The Basis For A Fruitful Building Partnership

The Age

Saturday July 9, 2005

By BRIAN WELCH

THERE are many facets to a successful relationship between builder and client, one of the most important of which is the contract document.

But if the client is not familiar with the building process, does not engage a competent and appropriate builder, has not given sufficient thought to the design and siting of the building or has failed to ensure that they can afford to service a mortgage, no contract will save the project from difficulty and disputation.

At the Master Builders Association of Victoria, we strongly recommend our domestic building works contracts, which we believe are clearly written, and fairly deal with the obligations of both builder and client.

It is the association's view that disputes do not arise because of the language or content of contracts, but because the parties fail to take the time to read their contract and to discuss it with the other party, or seek independent advice. However, should a dispute or difficulty arise, the content and clarity of the contract will then be of critical importance.

What the contract does is set down, in clear and unambiguous terms, all the matters thought necessary to deal with the many issues that might arise through the life of a project.

A building contract must deal with many complex issues and potential occurrences, and there is a limit to just how short and simple this can be made.

If you spend an hour or two coming to grips with your contract, you will enjoy a relationship with your builder based on understanding and co-operation, and will have gone a long way towards avoiding the problems and disputes that can befall those less interested in how they make the biggest investment of their life.

Brian Welch is the executive director of the Master Builders Association of Victoria