Understand the contract before work begins
A building contract allocates responsibility for scope, design, payment, time, variations, risk, insurance, defects, suspension and termination. Those provisions need to work with the drawings, specifications, programme, approvals and commercial deal rather than be read in isolation.
Pezikian Legal can review the proposed agreement from the perspective of an owner, builder, contractor, subcontractor, developer or consultant and identify provisions that require clarification, negotiation or project controls.
Residential and commercial projects
Residential building contracts in NSW are subject to mandatory requirements under the Home Building Act 1989 and related regulation. NSW Fair Trading publishes contract requirements and a checklist for owners entering home building contracts.
Commercial construction contracts can use different delivery models and standard forms, but still require careful attention to the scope, design responsibility, payment mechanism, programme, security, indemnities and dispute regime. The review should be tailored to the project, bargaining position and role of the client.
What a review may cover
- Parties, licensing and authority to contract
- Scope, drawings, specifications and contract documents
- Design responsibility and approvals
- Contract price, deposits, progress payments and security
- Variations and directions
- Delay, extensions of time and liquidated damages
- Practical completion, defects and warranties
- Insurance, indemnities and limits of liability
- Suspension, termination and step-in rights
- Security of Payment Act interaction
- Dispute resolution, service and governing law
A useful review output
A contract review should make the priority risks visible. Depending on the instructions, the output may include a written advice, marked-up contract, schedule of proposed amendments, negotiation support or a meeting to work through key clauses.
The review can distinguish between points that are unacceptable, points that should be priced or managed, and points that need clearer drafting. This gives the client a practical basis for deciding what to negotiate before signing.
Documents to provide
Provide the complete proposed contract, all schedules and annexures, drawings, specifications, tender clarifications, programme, scope, quotation, proposed amendments and any correspondence that records the commercial deal.
Contract advice is less reliable when annexures are missing or the scope has not been finalised. If execution is imminent, the deadline and any version history should be identified at the start.