Construction Archives - Page 6 of 8

Construction

14 March, 2022

Tranche II Building Reform Proposals

The NSW Government has tabled proposed amendments to key construction laws, including the Building and Construction Industry Security of Payment Act 1999 (NSW) (SOPA) and the Design and Building Practitioners Act 2020 (NSW) (DBPA), which it refers to as the Tranche II building reforms. On Wednesday 23 February 2022, a…

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Building Construction Contracts Security of Payments

11 March, 2022

The addition of absolute discretion in EOT clauses – No notices – no extensions of time

The New South Wales Supreme Court’s decision in Growthbuilt Pty Ltd v Modern Touch Marble & Granite Pty Ltd NSWSC 290 (Growthbuilt) has extremely significant implications regarding extension of time (EOT) clauses. Contractors and legal practitioners must take note of this momentous decision. Implications for contractors The key takeaway from…

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Building Construction Contracts Security of Payments

1 March, 2022

Identifying construction work in payment claims – correctly identify, or pay the price

To be able to access the adjudication process under the various Security of Payment schemes in Australia, claimants are required by legislation to “identify” the construction works in a payment claim for which they seek payment. The word “identify” does not arise frequently in security of payment legislation, but where…

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Construction Law Security of Payments

17 February, 2022

Payment Schedules Must Contain Proper Reasons to Withhold Payment

It is tempting to respond in a Payment Schedule with the words “pending”, “insufficient information“ or “we will not pay your claim until all works are finished”. However, these types of unsubstantiated reasons will not work. In the NSW Supreme Court of Appeal case, Joye Group Pty Ltd v Cemco…

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Construction Law

2 February, 2022

Security Of Payment Act: work within 12 months a matter for the adjudicator

Under the Building and Construction Industry Security of Payment Act 1999 (NSW) (Act), unless the contract provides otherwise, a payment claim may only be made within 12 months after the work to which the claim relates was last carried out (section 13(4)(b)). In EQ Constructions Pty Ltd v A-Civil Aust…

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Building Construction Law

14 January, 2022

Decennial Liability Insurance

After a spate of issues plaguing the building and construction industry in recent years, the NSW government is proposing the introduction of a decennial liability insurance scheme (DLI) with the view of increasing protections for owners and purchasers of residential apartments. What is DLI? DLI is a mandatory defects insurance…

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Building Construction Law

16 November, 2021

More Than A (Bare) Pleading – The Implications of the Supreme Court’s First Decision on the Statutory Duty of Care under the DBPA

The New South Wales Supreme Court has issued its first decision concerning the statutory duty of care in section 37 of the Design and Building Practitioners Act 2020 (NSW) (DBPA), which carried important implications in relation to the operation of the statutory duty of care in defects disputes. Vincent Young…

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Building Construction Contracts Property

11 November, 2021

Charging clauses in residential home building contracts

This article considers whether a licensed contractor can insert a charging clause in a residential home building contract. This question is important because it determines whether a licensed contractor can secure their entitlement to receive payment from a residential homeowner. A secured entitlement helps mitigate the risk of non-payment. Charging…

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Construction Contracts Law

26 October, 2021

Privity of Contract: The role of statutory warranties for third parties to construction agreements

Increasingly, we are reviewing contracts whereby developers seek to provide benefits to third parties by increasing who the contractor owes its obligations to under a contract. For example, a developer may amend all the indemnities in a contract to benefit “Indemnified Parties”. These “Indemnified Parties” are ordinarily third parties which…

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Building Construction Contracts Law

5 October, 2021

The Melbourne Earthquake: How it should have been dealt with in an Australian Standard construction contract

On 22 September 2021, a magnitude 5.9 earthquake struck Victoria. Undoubtedly, this led many construction managers in Melbourne to review their contracts to assess who bears the risk for any damage caused. Ordinarily, Contractors carry the risk for all loss or damage which occurs during the works whilst they are…

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