Building Contracts Victoria
There are no two ways about it when you undertake to build or construct you must have a contract in place. For the majority of people, contracts are a never-ending series of points that simply confuse matters when all they want is to achieve the build of their dreams. However, failure to take appropriate measures to ensure that you get what you signed up for and to understand all aspects of the build you are undertaking is essential.
Those that wish to find the best building contracts Victoria has to offer and bulletproof their agreement to prevent any nasty surprises further down the road are encouraged to retain the services of a law firm that can break down the jargon and ensure that they know exactly what they are putting their name to.
Here at Boutique Lawyers, we are a Melbourne-based law firm with a specific focus on building and construction law. Our small but very effective team of commercial contract lawyers are results oriented and since we started out in 2012, we have attained a 98% win rate for our clients. Basically, if we don’t think that we can achieve what you want to achieve, then we will not represent you. Too many firms are willing to take on clients with a view to the fees associated with the work, but you will not find that here at our firm.
Types of Building Contracts
Those that are dipping their toe into building or construction for the first time have three basic options to choose from in terms of builder contracts.
1) Fixed Price
This is the ideal way to go for most owners as it heaps the risk on the contractor as opposed to you. What this means is that the contract for the build is set at a pre-determined amount, which affords you the security of knowing what it is going to cost and enables you to budget effectively. For the contractor, they must execute within the budget set as this is what they have accepted to complete the build for.
2) Cost-Plus Fee
In this scenario, you, the owner, would agree to pay the builder or contractor a set fee in addition to the costs that they incur on the build. This building contract is one that Victoria’s owners must understand and lock down before any works begin. Determining how the indirect and overhead costs will be tallied is essential because otherwise there is a possibility of the cost of building greatly exceeding what your budget allows, and could result in considerable debt.
3) Unit Price
Here, the contractor is paid a fixed price per unit delivered, and is used where the number of units required to complete the work cannot be accurately estimated at the beginning. This is much more common in terms of works on roads or utilities.
Understanding the Options Available
Here at Boutique Lawyers, we have vast experience in terms of all aspects of building and construction law and understand each of the different contract types applicable, as well as the options in each case that may afford you a little less risk and more security.
So, regardless of whether you are terminating a building contract, or at the beginning of the contract process, rest assured that our team has the knowledge required to help you understand and achieve the results you want.
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