Building and Construction Lawyers Sydney Can Trust

Construction contracts in NSW involve various areas of high risk that are important and every client should be aware of. Some of these areas are:

• Deadlines for claims: The Building and Construction Industry Security of Payment Act 1999 sets strict timeframes for making and responding to payment claims. Failing to meet these deadlines can result in losing the right to claim or dispute a payment.
• Mandatory notices: The principal and the contractor are required to give each other certain notices under the contract, such as notices of delay, variation, dispute, suspension or termination. These notices must comply with the contract terms and be given within the specified time limits, otherwise they may be invalid or ineffective.
• Administrative requirements: The contract may impose various administrative obligations on the parties, such as keeping records, submitting reports, attending meetings, obtaining approvals, effecting insurance and providing security. These requirements must be fulfilled to ensure the smooth running of the project and to avoid breaches or disputes.

These are just some examples of the high-risk areas in construction contracts that can lead to legal difficulties if not carefully addressed and managed. If you are dealing with these concepts, we recommend seeking legal support from PBL Law Group's legal specialists in construction law.

If a construction project suffers delays, the principal, contractors and subcontractors may have different options depending on the cause and extent of the delay, as well as the terms of the contract. Some possible options are:

• Claiming an extension of time (EOT) to complete the work without being liable for liquidated damages or penalties. This option is usually available if the delay is caused by factors beyond the control of the parties, such as adverse weather, force majeure events, or variations ordered by the principal.
• Claiming additional costs or damages for the delay. This option is usually available if the delay is caused by the breach or negligence of the other party, such as failing to provide access to the site, defective work, or interference with the work.
• Terminating the contract for repudiation or frustration. This option is usually available if the delay is so severe that it makes the completion of the work impossible or impracticable, or if it shows that the other party has no intention to perform their obligations under the contract.
•  

However, these options are not always straightforward and may depend on various factors such as the type of contract, the notice requirements, the evidence of delay and its impact, and the dispute resolution process. Therefore, it is advisable to seek legal advice from a specialist construction law firm before taking any action in relation to a delayed construction project.

If you are a building and construction contractor who has completed work or supplied goods or services for a project, you have the right to receive payment by the due date. However, sometimes you may face a situation where the other party does not pay you on time or at all. This can cause serious financial and legal problems for your business. In such cases, you should take action as soon as possible to recover your money and protect your interests. 

One option is to use the Building and Construction Industry Security of Payment Act 1999 (NSW) (SOP Act), which allows you to make a payment claim and apply for adjudication if the claim is disputed or ignored. The SOP Act is designed to provide a fast and cost-effective way to resolve payment disputes in the industry.

Another option is to issue a letter of demand, which is a formal request for payment that sets out the amount owed, the deadline for payment, and the consequences of non-payment. A letter of demand can sometimes prompt the debtor to pay or negotiate a settlement. If the letter of demand is unsuccessful, you can also issue a statutory demand, which is a legal notice that requires the debtor to pay within 21 days or face the risk of being wound up by the court. A statutory demand can only be used if the debtor is a company and the debt is over $2,000.

Alternatively, you can try to reach a commercial settlement with the debtor through alternative dispute resolution (ADR) methods, such as mediation, arbitration, or expert determination. ADR can be a cost effective way to help you avoid or minimise litigation and preserve your business relationship with the debtor. However, ADR requires both parties to agree to participate and abide by the outcome. We highly recommend seeking proper legal advice on your unique situation to ensure your rights are properly enforced.

If you are involved in a construction project in NSW and you have a disagreement with another party, you should try to resolve it as quickly and amicably as possible. Disputes can cause delays, costs and stress for everyone involved. For example, you may face penalties for breaching your contract, or lose your right to claim payment for your work. You may also damage your reputation and relationship with the other party. Therefore, you should try to negotiate a settlement with the other party or use alternative dispute resolution methods such as mediation or arbitration. These methods are usually faster, cheaper and more flexible than going to court. They can also help you preserve your relationship and find a mutually acceptable solution.

However, if these options fail, you may need to take legal action in the appropriate court or tribunal. Depending on the nature and value of your dispute, you may need to apply to the NSW Civil and Administrative Tribunal (NCAT), the Local Court, the District Court or the Supreme Court. However, before you do so, you should seek professional advice from a construction lawyer who can assess your situation and advise you on the best course of action. A law firm specialising in construction law matters can help provide the right legal advice for you to resolve any current disputes relating to a construction project and prevent future disputes.