A bespoke up-to-date strata management agency agreement template and proposal, tailored for your firm!
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A bespoke up-to-date BMC agency agreement template and proposal, tailored for your firm!
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A bespoke contract to enable service charges direct to owners who want that special service that the committee does not wish to pay for.
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A bespoke up-to-date community, precinct and neighbourhood agency agreement template and proposal, tailored for your firm!
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Contract between a strata manager and a developer for pre-registration services.
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A bespoke up-to-date building management agency agreement template and proposal, tailored for your firm.
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A tailored by-law for your renovation works.
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An agreement from the owners corporation to owners or occupants to supply amenities, such as, electric vehicle charging infrastructure, telecommunication services, window cleaning, garbage disposal and recycling services.
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Posted 20 March 2015
Category: Subcontractors
Builders need to manage both the āfront-endā and āback-endā of works performed by subcontractors so that builders can take appropriate steps if a subcontractor performs defective work or fails to finish a job.
1. Collection of evidence āĀ Ā There are some simple techniques that can be executed to protect your business in the event of a failure by a subcontractor to comply with the terms of their engagement, as follows:
2. Notice of breach ā Where a subcontractor has failed to complete works, seek legal advice on whether it is appropriate to issue a notice of substantial breach or show cause notice.Ā If work remains uncompleted, you should seek advice on whether to terminate the contract and seek damages, or enforce specific performance of the contract.
3. Breach of subcontractor statutory warrantiesĀ ā In the case of a breach of subcontractor statutory warranties pursuant to the Home Building Act 1989 where a subcontract is entered into on and from 1 March 2015:
4. Record all communications with subcontractors in relation to defective or unfinished work ā Keep on file all letters of demand, evidence of defective or unfinished work set to subcontractors, responses from subcontractors, and invitations to subcontractors to inspect defective or unfinished works prior to those works being rectified or completed.
5. Documentation in support of backcharges ā Where unfinished works or defective works need to be completed by the head contractor and a backcharge is issued to the subcontractor pursuant to a āset-offā clause it is important to comply strictly with the terms of the subcontract relating to āset offsā and backcharges and retain all purchase orders, contracts, tax invoices and receipts for costs related to completion of unfinished works or rectification of defective works.
6. Consider commencing debt recovery proceedings ā A backcharge will be inappropriate if there are no amounts to set-off against the costs that you wish to recover from the subcontractor.Ā In those circumstances you should consider seeking advice on pursuing debt recovery proceedings.Ā Your contract administration procedures and evidence of the unfinished work/defective work will then become vital to your prospects of success in any such debt recovery proceedings.
7. Final note on ācorporate memoryāāĀ Finally, like all memories a corporationās memory is not infallible.Ā One of the issues that companies can struggle with is where employees leave and there is no āpaper trailā to allow disputes to be resolved, or even in some case for disputes to be appropriately identified.Ā Setting up your business processes and seeking legal advice or advice from independent experts at the critical points during a dispute can help to alleviate this problem.
***The information contained in this article is general information only and not legal advice. The currency, accuracy and completeness of this article (and its contents) should be checked by obtaining independent legal advice before you take any action or otherwise rely upon its contents in any way.