ARTICLE
18 January 2017

Builders and contractors: Are your contracts up to date?

HL
HHG Legal Group

Contributor

HHG Legal Group has been serving Western Australians for over 100 years. With a large team across five offices, we offer top-notch legal advice and representation, exceeding expectations for all clients.
Traditional construction industry contract clauses don't really fit the modular and pre-fabricated building paradigm.
Australia Real Estate and Construction

The construction industry is entering an era of rapid change of arguably unprecedented proportions.

Double-brick-and-tile and concrete tilt panels are already giving way to new methods of construction. Examples include the use of modules prefabricated offsite and new kinds of eco-friendly and energy-efficient construction methods and materials.

Consider hempcrete: a material made out of water, lime and hemp and other geosynthetic products used in road and railway construction, mining and resources, landfill and coastal engineering works. Consider, too, the results of research by Curtin University's Sustainability Policy Institute, which shows buyers are willing to pay for sustainability measures such as solar power with lithium storage, community gardens, recycling centres, bike sharing facilities, energy monitors, LED lights and smart meters and thermostats.

As the construction industry blazes a brave trail away from traditional approaches to building, there seems to be continued adherence to traditional forms of construction contract which are ill-adapted to these changes.

One example is that 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.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More