We understand that in some circumstances employers will be forced to vacate and close a site.  

A site closure may expose your business to a variety of legal, insurance, financial, and industrial relations implications. Accordingly, if you are considering shutting down a site you should contact the MBV Advisory Team to seek advice.  

Depending on the emergency, you may have time to: 

  • Switch off electricity, gas, and water
  • Board up windows
  • Sandbag entryways
  • Secure materials, plant, and equipment, moving them to higher ground or off-site

If your site has been affected by inclement weather or a ground slip, excavations should be inspected prior to the site being accessed to ensure ground stability has not been compromised and foundations are secure.  

Be guided by the emergency services personnel. It's important to listen to their advice if you need to evacuate. If you do evacuate, take your valuables, and ensure everyone is accounted for and in a safe location. 

Communication with Employees 

If your business or community are affected by flood water, it is important to have clear and transparent communication with employees as far as possible. This may include providing regular updates and welfare check-ins. If you have EAP or support services, you may want to remind employees that these services are available.  

Leave arrangements  

We recommend that you work with your employees about available leave arrangements where they are affected by floodwaters. This could include taking paid annual leave or unpaid leave.  

Some employees may wish to assist with the emergency response, including as part of voluntary associations like the SES and CFA. Employees have the ability to take unpaid community service leave to assist with emergency management. You can read further here.  

Stand down 

If you can’t perform productive work because of floodwaters, you may be able to stand down employees without pay. You can read more about stand down here.  

If possible, we suggest you allow employees to take any paid leave for the period the employee would be stood down without pay. 

Legal Contracts

In the event your Works are delayed in any capacity due to the recent floods, we encourage Members to check your contracts for any relevant clauses, particularly those relating to delays. In addition, we encourage you to speak with your Insurance Brokers about your current policies and the potential impact these may have.  

We remind you to promptly apply for an extension of time pursuant to your contract. This ensures, not only that your clients are notified of the time delays but will also extend your construction period and subsequently extend your completion date and protect you from potentially accruing any liquidated damages claims. 

MBV HC7 New Homes Contract & MBV HIC6 Home Improvement Contracts (Domestic Contracts) 
 Under Clause 15 the Builder is entitled to an extension of time if the progress of the Works is delayed by, amongst other things: 
- any other cause beyond the reasonable control of the builder 

Please see our website for a template for your convenience.

MBV MW2 Minor Works Contract & MBV PS1 Pool 7 Spa Contract (Domestic Contracts) 
Under Clause 14 the Builder is entitled to an extension of time if the progress of the Works is delayed by any cause beyond the reasonable control of the Builder. 

MBC DCP2 Domestic Cost Plus Contract 
Under Clause 17, if, through no fault of the Builder, the progress of the Works is delayed by: 
- any other cause beyond the reasonable control of the builder. 

MBV GCC6 General Conditions of Contract & MBV CP1 Commercial Cost Plus Building Contract (Commercial Contracts) 
Under Clause 19, the Contractor shall constantly use best endeavours to avoid delay in the completion of the Works by the due date; but shall be entitled to an extension to the Contract period and a corresponding adjustment to the Date for Practical Completion with respect to any delay caused by, arising from or attributable to any event or events beyond its immediate control. 

Reasonable/Immediate Control: 

It is the legal team’s opinion that the effects of floods are beyond the reasonable control or the immediate control of the Builder/Contractor, however, the Builder must notify an Owner of any possible delay as soon as possible as per the contract.