The Queensland Building and Construction Commission (QBCC) has issued a public warning under the public under section 20J(1)(i) of the QBCC Act 1991.
The QBCC says that some building contractors are demanding additional funds from property owners to cover increased materials and labour costs.
โ๐ช๐ฒ ๐ต๐ฎ๐๐ฒ ๐ถ๐๐๐๐ฒ๐ฑ ๐ฎ ๐ฝ๐๐ฏ๐น๐ถ๐ฐ ๐๐ฎ๐ฟ๐ป๐ถ๐ป๐ด ๐ฎ๐ฏ๐ผ๐๐ ๐บ๐ฎ๐ธ๐ถ๐ป๐ด ๐ฝ๐ฎ๐๐บ๐ฒ๐ป๐๐ ๐ผ๐๐๐๐ถ๐ฑ๐ฒ ๐ผ๐ณ ๐ฏ๐๐ถ๐น๐ฑ๐ถ๐ป๐ด ๐ฐ๐ผ๐ป๐๐ฟ๐ฎ๐ฐ๐ ๐๐ฒ๐ฟ๐บ๐.โ
Home owners in Queensland are urged to seek legal advice before making payments that fall outside the terms of a fixed price building contract under the guise of โcontract variationsโ.
This is to protect the home owners from unwarranted payments.
QBCC Commissioner, Anissa Levy, says that there may not be any contractual basis for contractors to demand payment for increased labour and material costs as โcontract variationsโ under a fixed price contract.
โThe QBCC urges home and property owners to seek their own legal advice before agreeing to or paying an increase in the contract price for a fixed price contract.โ
Ms Levy says further adds that as a contractual issue, this matter would usually be considered a civil matter and the QBCC would not be able to become involved.
โHowever, it could be a breach of a contract, which could potentially allow the contract to be terminated and a claim lodged by the home owner through the Queensland Home Warranty Scheme.โ
Parties trying to resolve contractual issues over material or labour shortages should consider mediation with the Accelerated Builder/Consumer Dispute (ABCD) Framework.