Location: Sydney, NSW

Subcontractor: Facade and Glazing

A year-long delay and rising costs left this subcontractor out of pocket with no clear path to claim. Contract Aware stepped in, challenged the builder’s position, and secured a $500k variation, all for just 1% of the result.

Project

A state significant project in NSW. The subcontractor was contracted by a Tier 1/2 builder for the facade and glazing package totalling near $6 million.

Issue faced:

Due to a major delay that the subcontractor had no part in, they faced a delay of over a year. During this time and various continual design changes, the price of materials rose significantly and the way the project was also to be built changed. The subcontractor was faced with rising storage and material costs and a totally new project. With no avenue in their contract to claim delays they turned to Contract Aware for help.

Solution:

A plan was derived and a means of putting the builder on notice was enacted, despite the contract challenges we managed to successfully demonstrate our argument that “the program was at large” and to absorb these costs is unjust to be placed upon a business. After multiple meetings with the builder and Contract Aware present, a variation was agreed between the parties for the delay and the inflation of material costs. The variation was agreed circa to $500k, with Contract Aware’s costs being only 1% of this.

LESSONS LEARNED

  • Don't sign contracts that you haven't read, get Contract Aware involved prior to starting.
  • Be contractually compliant, issue your notices.
  • If the developer or builder has no program, it's a red flag. They have no idea how they are going to build and you'll pay the price.
  • Document all delays
  • Know your Security of Payment laws and be compliant. Pin these timelines

Contact us

Whether you're dealing with delays, disputes or need advice on contracts, reach out to see how we can help protect you and your business.