When preparing to undertake a major domestic building project, it is important for both the owner and builder to have a clear understanding of the terms and conditions of the contract that governs the project. One such contract that is commonly used in the construction industry is the Major Domestic Building Contract (MDB), which provides a framework for the completion of building works for a residential building.
The MDB contract is a legally binding agreement between the owner and the builder, which outlines the responsibilities and obligations of each party, as well as the terms and conditions under which the building works will be completed. It is designed to protect the interests of both parties by ensuring that the project is completed on time, within budget, and to the agreed-upon quality standards.
The MDB contract covers a wide range of issues, including the scope of the building works to be completed, the payment schedule, the time frame for completion, the quality standards to be adhered to, and the dispute resolution process. It also includes a number of important clauses that protect the interests of both parties and ensure that the project runs smoothly.
One key aspect of the MDB contract is the provision for progress payments. Under this provision, the builder is entitled to receive payments at various stages of the project, based on the completion of specific milestones or stages of construction. This helps to ensure that the builder has the necessary resources to complete the work on time, while also providing the owner with a degree of certainty that the project is progressing as planned.
Another important element of the MDB contract is the dispute resolution process. In the event that a dispute arises between the owner and the builder, the contract provides for a formal process of mediation or arbitration to resolve the issue. This helps to ensure that any disputes are resolved in a timely and efficient manner, without the need for costly and time-consuming legal action.
In summary, the Major Domestic Building Contract is an essential tool for anyone undertaking a major domestic building project. By providing a clear framework for the completion of the building works, it helps to protect the interests of both the owner and the builder, and ensures that the project is completed on time, within budget, and to the agreed-upon quality standards.