How 2 Terminate Building Contract!

M

Mamaof3

Hi All,

Our builder has been stuffing us around for months and sometimes it takes 6 weeks before he returns our calls....we want to terminate the contract and get another builder to come in to finish the job and was told by a friend that there should be something in the contract about non-communication (or to that effect) which would give us sufficient grounds to terminate but i can't find it!

HIA has a consumer hotline but they charge a whopping $2.75/min to call them for advice! Thought i'd try my luck here first to see if anyone is familiar with the HIA building contract?

Anyone?????????

Kim
 
And if you ring that HIA hotline you get a uni grad who is reading from the contract just like you could.

This was my experience and even though I thought I was clear and concise in my question she kept interpreting it incorrectly and all I could hear her do was shuffle papers and say to me "I am looking through the contract to find what you are asking me" complete waste of time in my opinion
 
Surely something like returning calls does not need to be specific within the contract!

It is implicit in the contract that the builder provides a basic level of service. If it's as bad as you make out, then if it went to court I'm sure you could show that the builder was not operating within the intent of the agreement.
 
Big move, changing horses midstream. If the actual work done is up to standard you may have to cop it sweet. HIA contracts are written by the industry for the industry.

Are there builders sitting around waiting for the phone to ring? Certainly not so here, and there could be an understandable reluctance for someone to take up a job someone else started.
 
I had to ring back to make sure i heard correctly re the $2.75/min consumer hotline and sure enough i was right!

We have found because its so close to completion that no other builder was willing to take on the work and finish it but we have a friend who is a licensed builder and he's happy to do a favour for us so we have the back up plan sorted.

I agree with you McBain, i don't see not returning our calls/emails/faxes/sms's for weeks on end as satisfactory customer service. We have contracted him to build 5 of our homes and we see it within our rights to be able to contact him every so often to find out the progress of them. He's non-contactable :mad:. Our other friend who we recommended use this builder is now in the same position....

just sent builder an sms telling him if i don't hear back from him today i will proceed down the path of terminating our contract. looks like it did the trick coz he sms'd back and said he'll call me at 2pm......it had to resort to me threatening to terminate before he'd return my call!

anyone know an honest, reliable, fast and cheap builder out there by any chance :rolleyes:
 
I have just gone down this path. PM me if you want to know any of the finer details or anything else.

Any builder that fails to communicate is a sign of trouble as they may be avoiding you due to the fact that they are in trouble, or just don't care. Ours did this, and they were basically trading insolvent.

Termination is basically writing a letter outlining their breaches of contract, and yes non-communication is a breach as is suspending work without written notification (delays), giving them 10 days to show cause and get back on the job or you reserve your right to terminate.

After 10 days and if they haven't got their crap together, you can then send a letter stating that your contract is terminated.

Thats it in a nutshell. I would say definitely get legal advice before you go down this path, it can potentially get messy.

Also, be aware that you current builder can slap a caveat on the property for "loss of profit" or expenses unpaid. Assuming you haven't paid all commitments.

As for a new builder, good luck, but it isn't impossible. Most builders will want to cover their arses, and so you may be best to get all the details of the tradesmen/businesses who have worked on the house, this is so any new builder can be satisfied with the work, and also have the tradies sign off on the work completed thus far. This will help you in assuring any new builder that they won't be taking on a liability. I went through a list of 65 builders, and only 3 were interested in taking on the project!

You may also have to resubmit plans to council if you change builder, another potential delay & cost.
 
Last edited:
hi
there is a procedure that has the be done and you do need to follow it very carefully.
you need to get a copy of the contract that you signed if its a red cover hia members contract which is the normal off the shelf contract.
there are clauses in there to say why you want to cancell the contract.
make sure that your letter itemises these clauses.
you must give the builder 10 working days to respond and do not get another builder to come on to site or do any work at all before thios time has elapsed or you can be in breach of the contract and the the shoe is on the other foot.
make sure that you send the letter via australia post and certified so the builder signs it( nsw not sure about other states but should be fine)
once you get the signature back then the 10 days starts.
once the 10 days is up you then need to send another letter cancelling the contract and again certified and again no new builder and again wait 10 days.
once this has happened then you can organise a new builder.
peter merity at parramatta here in nsw is very good at construction and contract law and it maty cost you a bit of money but it will save alot in the long run and if you are inter state he will know who is in your area in this field.
I have just cancelled a builder and am in the middle of organising a new one and the builder has liquidated so you have to follow these rules very carefully so you don't get in hot water for breaking a contract.
they are very messy and should be avoided if possible sometimes thats not an option.
hope this helps
if you scan the front of the contract and email it to me I can tell you the type of contract it is.
 
dont mess around with it - the BSA and HIA will protect the builder in most cases as the builder pays fees every year to keep them in business!!!!

Builder could try to slap you for interest on the contract price - which could hurt also....

Just grit your teeth and count it as an 'experience' - one of those lessons...
 
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