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ARTICLE · 13 APRIL 2023

How principals can effectively manage defects and delays in projects

Bartier Perry Solicitors
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The contract is the main source of a principal's rights and will usually include provisions regarding defects and delays.

AustraliaReal Estate and Construction
Mario Rashid-Ring
Mario Rashid-Ring
Nicholas Kallipolitis
Nicholas Kallipolitis
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The current construction landscape is characterised by more insolvencies, fewer contractors and contractual mechanisms with less practical force.

Defects and delays in construction and infrastructure projects have long been a thorn in the side of principals. Historically, however, principals have been in an excellent position to seek remedies by virtue of a much stronger bargaining position during initial contract negotiations.

While that bargaining strength remains, principals now face the real prospect of a contractor becoming insolvent or being unable to rectify defects. In that case, achieving meaningful remedies may be a lost cause.

Trends that have led to difficulties for contractors include:

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