CONSTRUCTION CONTRACTS

Construction Contracts

A construction contract means a commercial construction contract or a residential construction contract, including any variation to the contract and relates to carrying out construction work which has the meaning set out in section 6 of the Act.

The definition of construction work includes inter alia, the construction, erection, installation, carrying out, alteration, repair, restoration, maintenance, extension, demolition, removal or dismantling of any building or structure forming or to form part of land, including roads, aircraft runways, wharfs, docks, railways, cableways, canals, waterways, pipelines, reservoirs, services reticulation and fittings installation, land drainage and coast protection, certain external or internal cleaning of buildings and structures, any operation that forms an integral part of, or is preparatory to, or is for rendering complete those works, foundations and the erection of scaffolding and cranes. The supply of prefabricated customised components for any building or structure is also caught.

The Act differentiates between residential and commercial construction contracts to the extent that different procedures apply for making and giving notice in relation to progress payments, giving notice of adjudication, suspension of works and the issue of charging orders.

Commercial Construction Contracts

A commercial construction contract means a construction contract for carrying out construction work in which none of the parties occupies or intends to occupy, the premises that are the subject of the construction contract wholly or mainly a residence.

Residential Construction Contracts

A residential construction contract is a construction contract in which one of the parties is an individual who occupies, or intends to occupy, the premises that are the subject of the construction contract wholly or mainly as a residence.

Compliance with the notice requirements for residential construction contracts is mandatory and failure to comply will result in payment claims and a Notice of Adjudication being invalid for the purpose of the Act.

To download a notice to accompany a payment claim served on a residential occupier click here

To download a copy of the statement of a residential occupier’s rights and obligations in an adjudication and a brief explanation of the adjudication process that must accompany a Notice of Adjudication served on a residential occupier click here