Builders, your subcontractor agreements need updating before the new BPC regime lands
Builders trying to navigate the new system in Victoria…
Building and Plumbing Commission is rolling out many new changes and they are not far away!
To be successful in this new world, builders need to be ‘proactive’ and ‘ahead of the game’ and have legal contracts and processes and systems to support them through rectification orders and other regulation.
That’s why at Brockhill & Usherwood Lawyers we are already creating legal means of responding to a new regime…
Reach out to me or our building team lead Katy Gale to understand more.
One area is a builder’s sub-contractor agreements need to be drafted to protect builders in the event of being ordered to return and rectify works which arose from a specific Subbie defects. Rectification orders are real and will be here soon. If a subbie stuffs up your old contracts won’t be clear enough about requiring them to return and rectify in a specified time frame and the repercussions for them of failing.
You need new clauses under your subcontractor agreements to not only require subbies to return (given the Building and Plumbing Commission will impose strict timelines) BUT mechanisms for loss to be calculated and paid by them.
Remember the new systems denies you proper apportionment - but your contracts can adapt to the new legislation.
Also, you need to know how to respond to an RO quickly and effectively and remember the RO can be issued to other parties not just the builder!
Be on the front foot prior to the new system landing.
Speak to us about how your subcontractor agreement as a start can be adapted.
This article is a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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