FAQ's Principal Building Agreement

BACK TO FAQs

PREVIOUS CLAUSE

Clause 16
NEXT CLAUSE

 

Question 1

The contractor has achieved practical completion and has been issued the works completion list which has a section of floor adjacent to an assembly line that has to be relayed (as required by the lessee) but the employer will not allow the contractor to do so before the line is closed for maintenance in 16 weeks time. The contractor believes he has a claim for loss and expense due to the lack of access and that final completion is likely to be delayed which will then delay his final payment. Is this correct? If so how should this be handled?

Ref: P16.001

Answer

In terms of 16.3 the employer must allow the contractor and n/s subcontractors reasonable access subsequent to practical completion to fulfill their obligations. Further the contractor is not obliged to do “additional work” [24.6] after the achievement of practical completion. The employer has little option but to negotiate with the contractor on the basis of a “petty contract” outside of the current agreement or to appoint “others” to undertake the work