Delays in construction projects are almost inevitable, especially when it comes to unpredictable weather and industry-wide trade or material shortages. Fortunately, residential home building contracts often provide mechanisms for builders to seek extensions of time (EOT) in such circumstances, provided they follow the appropriate procedures.
In this article, we explore how typical building contracts treat weather-related delays and trade shortages.
General Extension Provisions
Most building contracts include broader clauses that allow for EOTs due to:
- inclement weather;
- industry-wide shortages;
- industrial disputes or civil commotion;
- delays caused by local authorities; or
- other events beyond the builder’s reasonable control.
These provisions offer flexibility, but only when properly followed and documented.
Weather-Related Delays
Definition and Measurement
Most standard building contracts include provisions for adverse weather conditions as valid grounds for delay. Some contracts define “adverse weather” with specificity, such as any day on which 5mm or more of rain is recorded by the nearest Bureau of Meteorology station.
In addition to the direct impact of rainfall or storms, some contracts allow for additional drying time, often stating that two extra days of extension may be granted for each day of rain or moisture that affects work.
Notice Requirements
To claim an EOT for weather-related delays, builders are typically required to notify the owner in writing within a reasonable timeframe after becoming aware of the delay. The notice should include the cause of the delay, the requested length of extension resulting from the delay, and any supporting details or information to justify the notice of delay. Failure to issue timely notice may not automatically void the claim, but it can complicate dispute resolution and weaken the builder’s legal position.
Trade and Material Shortages
Qualifying Conditions
Another common cause of delay in residential construction is the shortage of skilled tradespeople or building materials. Where the shortage is industry-wide and beyond the builder’s reasonable control, most contracts will recognise this as a legitimate reason to extend the construction period.
Examples include:
- supply chain disruptions due to geopolitical events;
- sudden surges in demand causing material scarcities; and
- regional labour shortages.
Notice Requirements
The builders must notify the owner in writing promptly after becoming aware of the issue, specify the cause and the extension period sought, and demonstrate the efforts to mitigate the delay such as sourcing alternative suppliers or labour.
Key Considerations
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Documentation Requirements
Builders should maintain detailed and dated records of weather impacts, supplier notices, and correspondence with subcontractors. EOT claims must be in writing and include all relevant facts and timelines.
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Builder’s Obligations
Builders are expected to use their best endeavours to mitigate the delays. This includes acting promptly, communicating openly, and exploring alternative arrangements to keep the project on track.
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Limitations and Variability
Contract terms vary. Some contracts impose strict definitions for what constitutes weather delays (such as rainfall thresholds or drying periods), while others may leave these definitions more open to interpretation. Regardless, all extensions must be fair and reasonable to be enforceable.
Managing delays in residential construction requires clear communication, proper documentation, and a solid understanding of contractual obligations. Both builders and homeowners should review their contract terms carefully and seek legal advice if in doubt.
Feel free to contact Damin Murdock at Leo Lawyers via our website, on (02) 8201 0051 or at office@leolawyers.com.au. Further, if you liked this article, please subscribe to our social media accounts.
DISCLAIMER: This is not legal advice and is general information only. You should not rely upon the information contained in this article and if you require specific legal advice, please contact us.
