My builder wants to end a domestic building contract

Your builder’s written notice must describe the issues they want resolved.

Your builder can end your contract if you do any of the following:

1. Consistently do not comply with the contract;

   • An example could include that you do not give your builder information they have asked for about prime cost items or provisional sums. Prime cost items may include things like door handles, taps, carpet, or tiles that you want to choose yourself because of the design or quality. Provisional sums may include a bath and its installation, or a hot water system and its installation.

2. Indicate that you are unable or unwilling to make payments;

3. Do not resolve the issues identified in a suspension notice;

   • Your builder can give you a suspension notice before they want to end the contract and it may include issues from this list.

4. Do not show your builder evidence of your rights over the property (land title);

5. Take away their right to free and uninterrupted access to the property so they can do building works;

6. Do not show your builder proof that you can pay the full contract price;

   • Your builder may ask for this information within 14 days of signing the contract, or if they ask later you will need to provide them with proof within 14 days.

7. Make any late payments;

8. Move into the property without written consent from your builder and before making the final payment;

9. Consistently obstruct, interfere, or hinder the building works;

   • Examples could include giving directions to your builder’s workers or subcontractors, not supplying materials, not giving your builder information they need under the contract, or not agreeing to any reasonable or necessary changes to the contract.

10. Refusing reasonable access to the property; or

11. Are in substantial breach of the contract.

    • A substantial breach needs to be closely connected to the nature of your building contract causing serious consequences. It will always depend on the circumstances. If you think you may have substantially breached your contract, seek legal advice to understand if your circumstances are likely to be considered a substantial breach.

Your builder’s written notice must describe the issues they want resolved.

Your builder can end your contract if you are in substantial breach of the contract. A substantial breach will include if you:

1. Do not give your builder essential information they need for the building project;

   • This information may include evidence of your rights over the property (land title), proof that you can pay the full contract price, written evidence of loan agreements and mortgage documents including any associated inspections, copies of planning approval you are responsible for and proof of payment, and if the land is not vacant, evidence that any structures have been demolished and debris removed.

2. Make any late payments;

3. Move into the property without written consent from your builder and before making the final payment; or

4. Are in substantial breach of the contract.

   • A substantial breach needs to be closely connected to the nature of your building contract causing serious consequences. It will always depend on the circumstances. If you think you may have substantially breached your contract, seek legal advice to understand if your circumstances are likely to be considered a substantial breach.

Your builder must send you a written notice via registered post.

You have 14 days from the day you receive the notice to resolve the issues they have identified.

Your builder must send you a written notice via post, email, fax, or hand delivery.

You have 10 days from the day you receive the notice to resolve the issues they have identified.

If you have not resolved the issues in your builder’s written notice within 14 days, they can send you another written notice stating they are immediately ending the contract.

Your builder’s second written notice must be sent via registered post.

If you do not resolve the issues in your builder’s written notice within 10 days, they can send you another written notice stating they are immediately ending the contract.

Your builder’s second written notice can be sent via post, email, fax, or hand delivery.

Your builder cannot end your contract unreasonably or vexatiously. An example of this may be that it is unreasonable to end the contract if 14 days have passed, but you have started to remedy the issues in your builder’s written notice.

Your builder cannot end your contract if they are also in substantial breach of your contract. An example of this may be that your builder has not obtained the proper insurance for the contract or has suspended the works for a reason not allowed in your contract.

Your builder cannot end your contract if they are also in substantial breach of your contract. An example of this may be that your builder has not obtained the proper insurance for the contract or has suspended the works for a reason not allowed in your contract.