Terminating a building contract


Terminating a building contract

WHEN IT IS NOT ENTIRELY THE TRADES PERSONS OR BUILDERS FAULT:- If The delay in obtaining the licence and other official approvals is caused by you or by both of you or by something beyond the control of either of you, then there are several option.

1) The contract can remain as is or both parties can agree to change providing you adhere to the previously discussed section on “Varying the Contract”.

2) You can terminate the contract by notifying the trades person or Builder in writing , however you will be expected to pay for the labour and materials provided and used up to the termination date. The person doing the work must return any unused money that has not been already spent on the job.

3) The trades person or builder can terminate the contract by notifying you in writing, the same conditions apply as in item (2).

4) The trades person or Builder may seek to increase the contract value. this should be done in writing, notifying you of the amount of increase and when it is to be paid.

If the person doing the work chooses to increase the price the written request for payment must require you to pay within 10 days of notification, or at the time of the next progress payment. The extra payment can only be for genuine costs incurred up to the time of paying.

If the price rises more than 5% of the total con tract price, you may then terminate the contract. This must be done in writing within 10 days of receiving notification of the price rise. Alternatively you can ask the Building disputes committee to decide whether the price or rise is justified.

WHEN TERMINATING A CONTRACT:- Where either you or the person doing your building terminates the contract under the “Home Building Contracts Act” the person doing the work must return any money that has not already been spent on the works.

You will be expected to pay for all the materials provided up to the point of termination, if you and the trades person or Builder cannot agree you can apply for a resolve from the Buildings Disputes Committee. Remember to terminate a contract you must do it in writing sending it to the person doing the work.