JOEL and Jenny found an ideal block on which to build their family home.

They sold their old home, to finance the build.

Jenny was lucky enough to find a rental property close to the block, so they could send their children to their new school and watch over the build.

They signed a standard building contract with the builder, which specified the commencement date and a completion date 180 days post commencement.

The project began on time but delays resulting from inclement weather and the supply of materials meant that the project was soon running behind schedule.

Joel and Jenny understood that the terms of the contract allowed for delays. However, the delays turned into weeks, and weeks turned into months, and after six months only minor work was occurring on site.

With no communication from the builder, they were left unsure whether the house would be completed at all.

The build was now 220 days past the completion date, with 20 per cent of the contract still to be completed.

Joel and Jenny re-read the contract (a standard form NSW building contract) relating to the terms regarding delay and late completion.

They are surprised to find that the contract only entitles them to $1 per day as damages.

Now very frustrated about the delay, they seek legal advice as they were leaking money in rent and storage fees.

Their lawyer explains that the Supreme Court recently decided a case in which it ruled that nominal damages of $1 in a standard building contract conflicted with the operation of the Home Building Act 1989, which implied a warranty in the contract, that the work would be finalised within the stipulated time.

Accordingly, their lawyer advised Joel and Jenny that a breach of the warranty entitles them to claim full damages against the builder.

When this is communicated to their builder, the works are recommenced and completed without further delay.

Thank you to solicitor Anthony Fogarty for his assistance with this column.

Email Manny Wood, principal solicitor at TB Law at manny@tblaw.net.au or phone him on (02) 6648 7487.