Consumer Affairs Victoria Contract: Advantages
These contracts are standard form and are issued by the local government of Victoria, specifically Consumer Affairs Victoria.
Because these contracts are not issued by industry associations like Master Builders Association, Housing Industry association, or ABIC, you can expect these domestic building contracts to be more objective and fair to the parties, than industry-issued contracts which tend to skew more towards the Builder’s favor.
Important Clauses
Nonetheless, it still pays to take a closer look at clauses that affect your risk to time, cost, and quality.
The following are the essential terms to watch out for:
Cooling Off Period
What it is:
Sets out the five day period within which the owner may opt out of the contract after signing
Purpose:
Allows the owner leeway to terminate the contract without penalty
Risk minimised:
- Time
- Cost
Progress Payments
What it is:
Sets out the progress payments under the contract
Purpose:
To concretise the owner’s obligation to pay and the builder’s right to claim payment
Risk minimised:
- Time
- Cost
- Quality
Commencement of work
What it is:
Sets out the date when works are to be begun
Purpose:
States how the date of commencement of the work is determined.
Risk minimised:
- Time
- Cost
Finish Date
What it is:
Sets out the deadline for the building project
Purpose:
States how the finish date is determined.
Risk minimised:
- Time
- Cost
Extension of Time
What it is:
Sets out the process for builder to claim extension of time
Purpose:
Apprises owner of when a claim for extension of time may be allowed, and the procedure for making a valid claim
Risk minimised:
- Time
- Cost
- Quality
Completion of work
What it is:
Sets out the instance when the work is to be deemed completed
Purpose:
Directs the builder to give notice to owner, by way of Opinion, that Completion of Work has been achieved
Risk minimised:
- Time
- Cost
- Quality
Dispute Resolution
What it is:
Sets out the process to be followed when a matter under this contract is in dispute
Purpose:
Directs the builder to give notice to owner, by way of Opinion, that Completion of Work has been achieved
Risk minimised:
- Time
- Cost
- Quality
Suspension of work by the builder
What it is:
States the process to be followed when the Builder intends to suspend the work
Purpose:
To establish the proper procedure in suspending the works, and the ramifications in case of breach
Risk minimised:
- Time
- Cost
- Quality
Variations
What it is:
Sets out when changes may be made by either party
Purpose:
To apprise parties of when a variation is allowable and the conditions thereof
Risk minimised:
- Time
- Cost
- Quality
Termination
What it is:
Sets out the owner’s right to terminate the construction contract
Purpose:
To inform owner of their rights should they decide to terminate the contract, and to lay out the procedure to be followed for a valid termination
Risk minimised:
- Time
- Cost
- Quality
How We Can Help
The terms mentioned above are not an exhaustive list of clauses. For a more thorough, complete Contract Review by a specialist construction lawyer in Victoria, feel free to reach out to us. Your first consult is free.
