When does a Building Contract Really End

Building a home can be a family’s biggest project, and building contracts can be difficult to keep track of when the pressures of a home build are well underway. See below for a great example of how to make sure your building contract is completed correctly.

Barry & others V Queensland Building and Construction Commission [2015] QSC50.

In this case the builder was contracted to perform work. Most of the work was completed on 18 December 2007, with further work completed on 21 May 2008 and final Inspection Certificate issued on 26 August 2008.

The QBCC has the power to issue a builder with a direction to rectify defective or incomplete work. The QBCC in this case, did so on 22 August 2014.

The issue for decision, in this case, was whether this direction was required to be given within six years and three months after the “building work to which the direction relates” was completed.

The builder stated that he shouldn’t have to comply with this direction because it was out of time. An argument ensued before the Court which was determined by a trial which occurred in the Supreme Court.

It was the case for the builder that the direction to rectify was void.

The Court said that the direction would be out of time if the subject of the work was completed before 22 May 2008.

The Court examined the meaning of “building work” and the meaning of the word “completed”. “Completed” was not defined in the QBCC Act. The Court stated that the meaning of the word “completed” involves an element of finality and an identifiable end point from which the time limit begins. The Court found that in applying the statutory definition of “building work” this included contract administration. The Court said that contract administration included arranging for certificates. The work was therefore not completed until the final inspection had occurred which was on or around 26 August 2008. Therefore, the Court held that the direction was given within time.

RB Lawyers sees the relevance of this case as reaching beyond the issue of directions to rectify, but also encompassing time limits for when owners can give notice of defective claims under the QBCC home owner’s insurance policy as this case is now a clear authoritative decision on when that time limit should begin to run.

You need advice about your building contract, contact Robert Bakker.