AU766979B2 - A method for controlling the construction of a building - Google Patents

Description

-1-

AUSTRALIA

PATENTS ACT 1990 COMPLETE SPECIFICATION FOR A STANDARD PATENT

ORIGINAL

Name of Applicant/s: Actual Inventor/s: Address for Service: Equi-Build Pty Limited Joseph D'Agostino BALDWIN SHELSTON WATERS MARGARET STREET SYDNEY NSW 2000 ft r Invention Title: 'A METHOD FOR CONTROLLING THE CONSTRUCTION OF A

BUILDING'

Details of Associated Provisional Application No. PP9628 dated 07 Apr 1999 The following statement is a full description of this invention, including the best method of performing it known to me/us:- File: 27686AUP00 IP Australia Documents received on: 6 APR 2000 Batch No: -2- The invention relates to a method for controlling the construction of a building.

The invention has been developed primarily for controlling the construction of a house and will be described hereinafter with reference to that application. However, the invention is not limited to this particular field of use and is also applicable to controlling the building of housing units and other structures.

According to a first aspect of the invention there is provided a method of controlling the construction of a building including the steps of: providing a central information processing site for receiving and transmitting data to and from both a first party who desires the construction of the 10 building and a second party who is charged with affecting that construction; (ii) obtaining a predetermined monetary payment from the first party upon receipt of notification from the second party that a predetermined construction stage has been completed; and (iii) releasing the payment to said second party in the absence of notification •15 of a dispute from the first party within a predetermined period regarding the satisfactory completion of the construction stage.

Preferably, the method includes the additional steps of: (iv) notifying the second party in the event a dispute regarding the satisfactory completion of the construction stage is received from the first party within said predetermined period; resolving the dispute and releasing the payment to the second party; and (vi) repeating steps (ii) to until the construction of the building is complete.

-3- More preferably, the resolution of the dispute includes the step of: providing the second party with a second predetermined period in which to remedy the unsatisfactory construction stage; allowing the first party to inspect the remedied construction stage; and releasing the payment to the second party after notification is received from the first party that the remedied construction stage is satisfactory.

Preferably also, the resolution of the dispute includes the steps of: S. contracting an independent inspector to inspect the disputed construction •stage and report on the satisfactory completion or otherwise of the construction stage; 0. 10 and notifying the first and second party of the report.

*More preferably still, the resolution of the dispute also includes the step of: engaging an independent contractor to rectify the disputed work.

0• A preferred embodiment will now be described, by way of example only, with 15 reference to the accompanying drawing, in which: Figure 1 schematically illustrates the method according to the invention.

Referring to Figure 1, the method includes the provision of a central information processing site 1 for receiving and transmitting data to and from both a first party who desires the construction of the building (the owner 2) and a second party who is charged with affecting that construction (the builder The transfer of information between the parties and the central site is shown by the solid arrows in Figure 1.

Initially, the owner and builder confer and agree in general terms upon the size, nature and location of the proposed dwelling and the costs to be involved in affecting it's -4construction. Often this is done informally in so far as a written agreement has not been clearly executed by both parties.

After arriving at a preliminary agreement regarding size, style, cost and the like, the builder may elect to engage the central site to assist in controlling the construction.

Alternatively, the builder may dictate that any construction will be controlled by the central site.

In other forms, the central site may provide a referral service to bring builders and owners together.

••In this case, customers are preferentially referred to builders who have proven 10 track records for completing construction in a timely manner with a minimum number of disputes.

The builder 3 informs the central site 1, preferably by facsimile or e-mail, that some form of agreement has been reached. Thereafter, a data collection form is provided to the builder, again preferably by electronic means. More preferably, the data collection 15 form is automatically generated. For example, the builders original e-mail may prompt a return e-mail with an electronic data collection form attached, together with instructions detailing how to correctly complete the form.

Once received, the preliminary data, including the owners and builders details, the size, nature and location of the proposed building and the cost are recorded on the form which is subsequently forwarded by any suitable means to the central site 1. Upon receipt of the completed form, a formal agreement for the construction of the building is forwarded to the owner 2 and the builder.

The builder, having had the form and nature of the formal agreement explained before commencing dealings with the central site 1, need only confirm the pertinent details are correctly recorded before executing the agreement. However, a condition of the agreement is that the owner has a qualified expert explain to them the form and nature of the agreement as well as their obligations under the agreement. Once the terms and conditions have been explained the owner executes the agreement in the presence of the qualified expert.

If the owner is not familiar with the language in which the agreement is drafted then a translator must assist in the explanation of the terms and conditions and verify this I.ooo 10 in writing.

0 Once the builder and owner have executed their agreements, they are forwarded to the central site 1. In the case of the owner, their executed agreement is accompanied by a certificate to be executed by the qualified expert verifying that the agreement was explained to the owner, a translators certificate if necessary and a deposit towards the 15 cost of construction of the building.

Upon receipt of the executed agreements at the central processing site, each of the builder and the owner are provided with a copy of their counterpart agreement. That is, the builder receives a copy of the agreement executed by the builder and vice versa.

Also, the central site releases the deposit to the builder.

The builder then proceeds to use part of the deposit to pay plan preparation and approval fees prior to commencing construction of the building.

Once the plans for the building have been approved the builder commences the construction. In accordance with the terms of the formal agreement, the builder -6continues the construction until a predetermined stage is completed. Upon completion of this predetermined stage, the builder provides notification of completion to the central site 1 and the owner 2. Accompanying this notification is a request for payment of a predetermined progress payment pursuant to completion of the construction stage. The amount of the progress payment for the first and each following stage is also set down in the terms of the agreement. In some embodiments this is set at an initial 15% and then in subsequent steps of 20%, with a final 5% payment.

Upon receipt of the notification of completion and the accompanying request for S: !°payment the central site 1 draws the progress payment, on the basis of a previously 10 arranged irrevocable authority with the owners bank, into a centrally operated account 41. This and subsequent payments is represented by dotted arrow 42 in Figure 1. Arrow 44 indicates the control exerted over the central account by the site 1.

The irrevocable authority is utilised if the funds for the construction of the building are obtained by the owner from a bank or other lending institutions by way of a loan or 15 similar arrangement. The bank agrees that it will supply the loaned funds as they are requested by the central site to the centrally operated account 41. If the funds are not provided by a bank then ajoint central site 1 and funds are drawn from the joint account into the central account as notification of completion is received.

In return for controlling the construction of a building, the central site 1 may charge flat fees for each step of the construction process. Alternatively, the charges may be a function of the contract value. In any case, the fees levied by the central site are paid by the builder.

-7- From the time the owner receives notification that an agreed construction stage has been completed they will have a set period, say 2 days, in which to inspect the quality of the completed work.

If the owner is satisfied with the quality of work then after the 7 day period the progress payment, held in the central account 41, is released to the builder who will then continue construction until the next predetermined construction stage is complete. This payment is shown in Figure 1 by dotted arrow 43. This process is continued until construction of the building has been completed to the owners satisfaction and the builder has received the entire amount agreed to for the construction of the building.

If, as far as the owner is concerned, the building stage has not been satisfactorily completed then the owner may forward to the central site, by any suitable means, a dispute form detailing the disputed construction work accompanied by a refundable o •dispute fee. The central site then forwards the dispute notice to the builder. Further, in accordance with the terms of the formal agreement, the progress payment is not released 15 to the builder but is held in the central account pending resolution of the dispute.

At first instance, the builder is offered an opportunity to rectify or repair the disputed work. If the builder chooses not to rectify the work, or disputes the claim of substandard completion of the building stage then the central site will engage an independent inspector to inspect and report on the disputed work. On the other hand, if the builder elects to rectify the disputed work, then the dispute fee is refunded to the owner and the progress payment, less a dispute resolution fee, is released to the builder who will then proceed with the next construction stage.

-8- In the event that an inspector is engaged, they will furnish the site 1 with a report on the satisfactory completion, or otherwise, of the disputed work as well as whether further construction can proceed before the disputed work is rectified. Also, if rectification is necessary, the inspector will provide an estimate of costs of repairs to the site 1. If, in the inspector's opinion the work was not satisfactory, the builder is offered a second opportunity to rectify the disputed work. If the builder elects to rectify the work then, after completion the work, the inspector will reinspect the work and report to the central site 1. Alternatively, if the builder elects not to repair the work then the site 1 will tender for an independent contractor, (the second builder) to repair the work. At this o. 10 point, the progress payment less the expected cost of repairs, plus a contingent amount of of the inspector's estimate will be released to the builder 3. Pursuant to the S inspector's report the builder may be free to continue construction of the building or may have to await completion of repairs by the second builder. After the second builder has °repaired the disputed work the inspector then inspects the repairs and reports to the 15 central site 1 on the satisfactory nature, or otherwise, of the repairs. When the work has been satisfactorily repaired the second builder is paid. If the cost of repairs is less than that estimated then the difference will be credited to the builder 3. Alternatively, if the repair cost exceeds the estimated cost then the difference will be deducted from the next progress payment.

If, after examining the disputed work, the inspector contends that the dispute is unfounded then the dispute fee will not be refunded to the owner and the progress payment is released to the builder.

-9- The steps discussed above are repeated until construction of the building is complete and the builder has received full payment for that construction.

Although the invention has been described with reference to specific examples it will be appreciated to those skilled in the art that it may be embodied in many other forms.

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Claims (6)

1. A method of controlling the construction of a building including the steps of: providing a central information processing site for receiving and transmitting data to and from both a first party who desires the construction of the building and a second party who is charged with affecting that construction; (ii) obtaining a predetermined monetary payment from the first party upon receipt of notification from the second party that a predetermined construction stage has been completed; and (iii) releasing the payment to said second party in the absence of notification oO 10 of a dispute from the first party within a predetermined period regarding the satisfactory completion of the construction stage.

2. A method according to Claim 1, wherein the method includes the additional steps of: (iv) notifying the second party in the event a dispute regarding the satisfactory 15 completion of the construction stage is received from the first party within said predetermined period; resolving the dispute and releasing the payment to the second party; and (vi) repeating steps (ii) to until the construction of the building is complete.

3. A method according to Claim 2 wherein the resolution of the dispute includes the step of: providing the second party with a second predetermined period in which to remedy the unsatisfactory construction stage; 11 allowing the first party to inspect the remedied construction stage; and releasing the payment to the second party after notification is received from the first party that the remedied construction stage is satisfactory.

4. A method according to Claim 3 wherein the resolution of the dispute includes the additional steps of: contracting an independent inspector to inspect the disputed construction stage and report on the satisfactory completion or otherwise of the construction stage; and t notifying the first and second party of the report.

5. A method according to Claim 4 wherein the resolution of the dispute also includes the step of: engaging an independent contractor to rectify the disputed work.

6. A method of controlling the construction of a building substantially as herein described with reference to the accompanying drawing. DATED this 6th day of April, 2000 EQUI-BUILD PTY LIMITED Attorney: JOHN D. FORSTER Fellow Institute of Patent and Trade Mark Attorneys of Australia of BALDWIN SHELSTON WATERS