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ARTICLE · 22 AUGUST 2023

Builders beware! Major changes for construction contracts

Rostron Carlyle Rojas
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Construction contracts need to be carefully drafted to ensure builders can claim any additional increase to the contract price sum.

AustraliaReal Estate and Construction
Paul Rojas
Paul Rojas
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RECENT JUDGEMENT SPELLS POTENTIAL DISASTER FOR BUILDERS SEEKING TO CLAIM CONTRACT PRICE CHANGES IN RESIDENTIAL CONSTRUCTION FOR THOSE USING INDUSTRY STANDARD CONTRACTS.

The Australian residential construction industry is currently in a very turbulent position. The industry has become a battleground between owners seeking to have their homes built for the initial prices they were quoted and builders seeking to increase the contract price to maintain a profit while facing uncertainty regarding material, labour and other costs. This situation will likely only become more agitated as a result of a recent district court decision which has massive implications for construction contract drafting.

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