Practical completion of works under a residential building contract is a concept that is often misunderstood. Upon practical completion the final progress payment is payable, the defects liability period under the contract begins to operate and the 6 year time limit to commence a regulated building service complaint against a builder begins to operate.
Q: I am negotiating with my builder about the terms of my residential building contract. I have heard about a “rise and fall clause” in a building contract. What is a “rise and fall clause”?
How do I figure out when my builder is to complete building my home and give me possession? Does the time start from the date I signed the contract, from issue of the building permit or when the slab is poured? I am trying to figure out how late my builder is running.
Question: My builder has breached the building contract between us. Can I terminate my building contract? How can I effect a termination of the building contract? Are there any risks involved?
