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:

Domestic building contract cooling off period
For illustration purposes only

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:

domestic building contract progress payments
For illustration purposes only
Progress payment stages
For illustration purposes only

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:

domestic building contract commencement of work
For illustration purposes only

Finish Date

What it is:

Sets out the deadline for the building project

Purpose:

States how the finish date is determined.

Risk minimised:

domestic building contract finish date clause
For illustration purposes only

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:

extension of time clause building contract
For illustration purposes only

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:

dispute resolution procedure clause VIC
For illustration purposes only

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:

For illustration purposes only

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:

suspension of work clause on domestic building contract
For illustration purposes only

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:

builder variation or specification section
For illustration purposes only

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:

For illustration purposes only

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.