CONTRACTUAL

Activating Your Construction Contract

Legal Advisory

Case Outline

I am advising on a remediation project for a residential complex which involves extensive steel corrosion repairs. The extent of damage will not be known until work has started.

A builder was selected following assessment of submitted quotes.

The Contract

Against my advice, a pro-forma building contract was prepared, without legal consultation.

The pro-forma contract was submitted to the Body Corporate for approval.

Activation

Before the contract was signed, Body Corporate approval was given for the builder to enter the complex and begin site establishment works and delivery of construction materials and equipment.

Counter Offer

At this point, a request was made by a previously silent Body Corporate member that the contract should be reviewed by a Solicitor. A review was carried out, and several changes were proposed to contract clauses.

Argument

However, should the builder so choose, he can argue that the original pro-forma contract is actually now a legal contract. The actions of both parties, in allowing the builder to access the complex and set up materials and equipment, could be sufficient for a Court to give legal status to the unsigned contract.

Leave a Reply