Contract documents used for modular construction projects should be designed especially for the unique features of modular construction. HHG Legal Group's construction team has developed bespoke contracts for modular construction. By reducing uncertainty, our contracts for both the supply of modular building products and their assembly on site, minimise risks and costs and make drawn-out legal disputes less likely.
Modular construction has received a lot of media attention lately. And it makes sense considering the relative speed of modular construction, allowing for a higher turnover of new builds and therefore, potentially better margins for developers, less interest on borrowings by contractors, and lower prices for consumers. Many of WA's and Australia's most reputable construction companies are very active in this space.
However, many contractors and developers often use industry standard works contracts which are unsuitable for the project. For example, traditional contract clauses dealing with staged progress payments, retentions of title and other forms of security of payment, and passage of risk, don't really fit the modular building paradigm.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
