In the course of acting for (Homeowners) against BGC Residential Pty Ltd (BGC) and its associated entities, Vogt Legal has become aware of the (Proviso) often included at the end of clause 11(b) of BGC’s building contracts:

In determining whether there is any shortage in the supply of materials or labour for the purpose of this clause, the Builder shall not be under any obligation to pay more for labour and materials than budgeted for by the Builder in determining the Contract Price in order to secure labour and materials.

Clause 11(c) of BGC’s standard (Building Contract) permits the (Builder) to extend the time for completing the Works for any cause specified in clause 11(b).  In turn, clause 11(b)(vii) permits the Builder to extend the time for completing the Works for “any delay in the supply of materials or shortage of labour”.

It is important to understand that the non-renewal of Projex Management & Construction Pty Ltd trading as Nicheliving (Nicheliving) registration as a building contractor does not void your contract.

This means that the building contract remains valid and subsisting.

When a Subcontractor is awarded a job and a Headcontractor issues it with a purchase order, the purchase order is often subject to a contract document styled ‘Terms & Conditions’, ‘General Conditions’, or ‘Subcontractor Agreement’.

If you are building with Projex Management & Construction Pty Ltd trading as Nicheliving (Nicheliving), you may have seen the recent press release from the Department of Energy, Mines, Industry Regulation and Safety which states that the Building Services Board has refused to renew Nicheliving’s building contractor registration.