Can I Challenge Additional Costs Imposed by the Builder Due to Delayed Development Application Approval?

Question from Asem, Can I Challenge Additional Costs Imposed by the Builder Due to Delayed Development Application Approval?

Answer from AI:

The situation you’re facing is complex and involves interpreting the terms of your contract, as well as understanding the Home Building Act 1989 (NSW). It’s important to note that while I can provide general information, you should consult with a legal professional for personalized advice.

Understanding the Contract

The contract you’ve signed with Domaine Homes is based on the Home Building Act 1989 and includes a clause that the builder is responsible for making the Development Application (DA). However, it doesn’t specify a timeline for this process.

The contract also includes a clause that allows the builder to review and potentially increase the total price if construction doesn’t start by a certain date. This date is six months after the tender expiry date, which in your case is 11 September 2023.

Challenging the Additional Costs

Whether you can successfully challenge the additional costs of $97,025 imposed by the builder depends on several factors:

• Contract Interpretation: A court would likely look at the wording of the contract and its overall context to determine what the parties intended. If the contract is unclear or ambiguous about the timeline for the DA, this could potentially work in your favor.
• Builder’s Responsibility: If the builder was responsible for the DA and there were unreasonable delays on their part, this could also be a factor in your favor. However, you would need to provide evidence of this.
• Unfair Contract Terms: Under the Australian Consumer Law, you may be able to challenge the additional costs if they are deemed to be an unfair contract term. This could be the case if the term causes a significant imbalance in the parties’ rights and obligations, is not reasonably necessary to protect the legitimate interests of the builder, and would cause detriment to you.

Next Steps

If you decide to challenge the additional costs, you might want to consider the following steps:

1. Consult with a legal professional who specializes in contract law or construction law. They can provide personalized advice based on your specific situation and help you understand your options.
2. Consider alternative dispute resolution methods, such as mediation or arbitration, which could be a quicker and less costly way to resolve the dispute.
3. If necessary, you could take the matter to court. However, this should be a last resort as it can be time-consuming and expensive.

For more information, you can refer to the Home Building Act 1989 (NSW) and the Australian Consumer Law guide on unfair contract terms.