Delay in Home Building
Delay happens when the construction of your home takes longer than the period you and the Builder agreed upon in your contract, or when the construction is taking an unreasonable length of time to finish.
It’s important for you to know the Commencement and Building Period, because that clause lays out the period within which the building project should be completed.
Another important clause is the Statutory Warranties, which says, in part, that the building must be completed within the period agreed upon, or within a reasonable time.
Sometimes, there are circumstances beyond a Builder’s control, that cause them to slow down work; as for example, a decline in supplies and building materials. Another allowable delay is when the Builder validly suspends work for non-payment (by the owner) of progress payments
Extension of Time
In cases where delay is justifiable, the Builder must send a Notice of Extension of Time.
What Happens When Delay is Not Justified
When the cause of delay is not among those allowed by the contract. or if the Builder incurs in delay without having given a Notice of Extension of Time, the owner will be entitled to Damages, in an amount agreed to in the contract.
When Delay Escalates into Dispute
Delay turns into a building dispute if the delay is not covered by a Notice for Extension of Time, or when the delay is unreasonable or not allowed, and the Builder does not pay Damages for the same.
How to Settle Dispute Arising From Construction Delays
1. The first option given by the HIA contract, is to end or terminate the contract for breach.
2. The second option is to undergo Dispute Resolution. The HIA contract tells you how.