Construction Law

Julian Bailey

Document

CHAPTER 19 HOME BUILDING CONTRACTS

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Introduction

19.01 Contracts with natural persons for the performance of building work on their actual or intended residential property are, in many ways, no different to

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building contracts involving commercial parties and commercial purposes. Both types of contract require that there be a sufficiency of agreement on terms, including importantly the scope of works, and both types of contract will contain express or implied terms as to the adequacy and timing of work to be performed by the contractor, and the price to be paid for it. There is no inherent reason, in logic, why a contract with a natural person for, say, the construction of their house should be treated any differently to a contract with a large corporation for the construction of an office building, a power station, or some other business asset. At common law, freedom of contract applies to contracts between builders and consumers just as it applies to contracts between sophisticated business operatives.1

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