Case Note: Patel v Southern Cross Joinery Pty Limited NSWCATCD 162 The NSW Civil and Administrative Tribunal (NCAT), unlike any other Court, can make costs orders and work orders. Contractors must behave professionally when carrying out construction works. Otherwise, Contractors may have costs ordered against them, rather than a…
23 January, 2023
What is the evidentiary threshold for combustible cladding?
In our previous article published this October titled, “Governments react to combustible cladding following the Grenfell fire?”, we discussed NSW and UK government reactions to combustible cladding post-Grenfell. Here, we ask what evidence is required to determine whether the builder or developer is liable to replace retrospectively-banned cladding. Biowood…
11 January, 2023
The First Home Buyer Dilemma – Stamp Duty or Property Tax?
From 16 January 2023, eligible first home buyers will have a choice between paying stamp duty on the transfer of the land or an ongoing property tax. It is estimated that it takes the median NSW household around 10 years to save for a 20 per cent deposit and…
If you are carrying out commercial construction work or considering moving into the commercial construction sector on the basis of its (currently) relaxed licensing requirements, we recommend that you read this article. NSW is the only jurisdiction in Australia that does not require a building licence to carry out…
3 January, 2023
New NSW Government Commercial Principles
On 1 September 2022, the NSW Government published its “Commercial principles on escalation risk for infrastructure projects” (Commercial Principles) to guide contractors and government agencies through the current inflationary environment. The Commercial Principles recognise cost escalation as a foreseeable risk that can be managed. These are intended as a…
26 December, 2022
Comparison of Home Warranty Insurance Schemes
What is Homeowners’ Warranty Insurance? Homeowners warranty insurance (HWI) is a type of mandatory insurance designed to protect homeowners in the event that certain residential building works are defective or incomplete. HWI is known by many different names throughout Australia. National Approach Currently there is no uniform national approach to…
19 December, 2022
Warranties by the Provider of Free Issue Material
General Rule The general rule is that a person who contracts to do work and supply materials warrants that the materials used will be of good quality and reasonably fit for its intended purpose, unless the Contract excludes such warranty. Free Issue Items/Material In McMurray v AIG Insurance Australia…
14 December, 2022
‘Pay When Paid’ Clauses Do Not Work – Maxcon Constructions Pty Ltd v Vadasz [2018] HCA 5
What exactly is a ‘pay when paid’ provision? A ‘pay when paid’ provision is one where the release of retention under a subcontract is dependent on the operation of a clause of the head contract. Under s 12 of the Building and Construction Industry Security of Payment Act 1999…
2 December, 2022
Director Penalty Regime
Any moratoria in place since COVID-19 is now at an end. The Australian Tax Office (ATO) has reverted back to recovering outstanding tax liabilities. If you are a director of a company, it is important that you are aware that the ATO can, in particular circumstances, recover unpaid company tax…
28 November, 2022
Unreasonable or Disproportionate Rectification Scope – Where do Courts Draw the Line?
Where defective construction work requires rectification and the rectification work is carried out by the Principal, the Principal is entitled to recover the cost of those rectification works in the form of damages. This article considers the extent of the damages recoverable by a Principal. How does a Principal recover…