VIC Termination of a Building Contract Invalid?

Discussion in 'Commercial Law Forum' started by Manjith, 9 September 2019.

  1. Manjith

    Manjith Active Member

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    Hi

    We have a dispute with my builder. We terminated his building contract because he breached his insurance. Firstly, we sent two notices saying to renew his building damage risk liability insurance. But he didn't reply to us. Thereafter we sent the termination notice. We have given plenty of time to renew his insurance.

    But after nearly month his lawyer said he has reinstated his insurance before we sent first request letter and because of that, they said termination is invalid.

    Two questions.

    Can I start my building work with another builder?

    How I sort out it's valid or not? My lawyer said they did according to legality of building contract termination.

    I am puzzle I have to go to courts or not and worry about continuing work with another builder.

    Thanks
     
  2. Paul Cott

    Paul Cott Well-Known Member
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    Hi Manjith,
    To terminate a building contract is a tricky area and if your lawyer dud it then presumably he did it correctly. It’s hard to say without seeing any of the documents. If you do engage another builder the old builder may claim he has suffered financial loss as a result of your allegedly wrongful termination. Secondly engaging another builder may cost you more as a second builder often puts a premium on price as they are taking over someone else’s work. whether it’s a valid termination or not reality ultimately only vcat can decide if the question came to them. That’s all I can say at this point.
     
  3. Manjith

    Manjith Active Member

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  4. Manjith

    Manjith Active Member

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    Hi Paul,

    Can you tell me how costly is VCAT proceeding, Is there any lawyers who can talk if you struggle for legal payments.


    Thanks

    Manjith
     
  5. Paul Cott

    Paul Cott Well-Known Member
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    Hi Manjith,
    It’s hard to give a price for vcat proceedings as it depends on what the issues are, and how much work is involved. I can perhaps negotiate payment by instalments and maybe other lawyers may accept it. Paul Cott.
     
  6. Manjith

    Manjith Active Member

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    Thanks Paul,

    It quite expensive to hire a lawyer in VCAT. Sometime it range from 10,000-15,000 for a mediation level VCAT inquiry. If its drake for three to four days then I don't know what is the cost blow out. Ordinary person cannot afford this cost structure. I cannot afford this much because if the builder refuse or unable to pay the damages, then how can I compensate money. He may agree to pay very minimum payment. For example, 100 per month.

    Is there any legal aid we can hire or can we represent our self ?
     
  7. Paul Cott

    Paul Cott Well-Known Member
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    Legal aid doesn’t find these types of cases. You could represent yourself but it is risky. Especially if the builder has a lawyer. I wouldn’t charge anywhere near 10 to 15 k most likely.
     
  8. Manjith

    Manjith Active Member

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    Hi Paul,

    Please send me your contact details to following email. I would like to have a conversation.
    manjith155 at yahoo .com
     
  9. Paul Cott

    Paul Cott Well-Known Member
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    Thanks, I have emailed you.
     
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