SEPTEMBER UPDATE
VY’s annual Q&A Dinner – Construction in Crisis
Vincent Young recently hosted its inaugural dinner, focusing on the pressing crisis facing the construction industry. The evening brought together a distinguished group of developers, builders, subcontractors, financiers, and insolvency practitioners, each offering valuable perspectives on the sector’s challenges. The gathering proved not only to be highly informative but also an exceptional opportunity for networking, marking a memorable and impactful evening.
The dinner focussed on the appalling statistics surrounding construction. On average, an Australian construction company has filed for bankruptcy every 24 hours over the last two years. Major construction companies like St Hilliers, PBS, Grocon, Porter Davis and ProBuild have all collapsed. There were significant concerns raised regarding the long-term sustainability of the construction sector and its capacity to address Australia’s future building requirements. The main reasons we are in a construction company crisis is due to the aftermath of the Covid-19 stimulus, supply chain disruptions, interest rates increases, severe labour shortages, unions involvement and a raft of new oppressive and voluminous legislation .
What was discussed was a need for a change in the balance of power from principals to contractors in contracts, improved construction practices, simplified construction legislation and greater accountability of subcontractors.
What was abundantly clear from the vibrant discussion is that change had to occur but that the changes to date had been dramatic, difficult and costly to the market.
I had a great night and so too did our guests.
John Sharkey Presentation to VY
Our construction team recently had the distinct privilege of hosting Professor John Sharkey AM, one of the giants in the Australian construction law. Professor Sharkey’s extensive expertise and groundbreaking contributions to the field, particularly through his seminal work, Building and Construction Contracts in Australia (co-authored with Dorter), have profoundly influenced our understanding of construction contracts and legal frameworks. Hearing his insights firsthand on construction law trends was an exceptional and rare opportunity, offering us unparalleled guidance and a deeper appreciation of the complexities within the construction law landscape.
Our construction team religiously holds internal weekly lessons reviewing each chapter of Dorter & Sharkey to become highly skilled.
Regards,
Brett Vincent, Founder & Partner Construction
CONSTRUCTION
Impact of using “without prejudice” documents in an adjudication
AM Darlinghurst Investment Pty Ltd as trustee for AM Darlinghurst Investment Trust v Growthbuilt Pty Limited [2024] NSWSC 825
In general, communications and documents marked as “without prejudice” cannot be used by the other party as evidence in court. This ensures that parties can speak openly about the matter in dispute and potentially reach settlements.
The recent case of AM Darlinghurst Investment Pty Ltd as trustee for AM Darlinghurst Investment Trust v Growthbuilt Pty Limited [2024] NSWSC 825 highlights the impact of the “without prejudice” privilege on the admissibility of evidence in an adjudication.
COMMERCIAL & INSOLVENCY
An uncomfortable letter of comfort
In Forex Capital Trading Pty Ltd (in liquidation) v Invesus Group Limited [2024] NSWSC 867, the Court considered two issues. The first issue is whether a liquidator, by admitting a proof of debt, creates a liability of the company in liquidation. The second is whether the determination of a liquidator is binding on the company in liquidation or a third party.
The answers to these questions determined whether the liquidators of a company could quickly recover the total amount admitted under proofs of debt from a parent company under a letter of comfort.
The Court answered “no” to both questions.
PROPERTY & PROJECTS
Liquidators Should Be Aware Of Strata Levies
A liquidator has the power to sell all or any part of the property of a company to which the liquidator is appointed under section 477(2) of the Corporations Act 2001 (Cth) (Corporations Act). When the court appoints a liquidator to wind up a company that trades as a property developer, the liquidator can sell any developed or partially developed lots owned by the developer. However, it can be difficult for a liquidator to sell developed or partially developed lots when those lots are burdened by unpaid strata levies for building defects.
THE GROUNDSWELL FOUNDATION
Vincent Young is a proud sponsor of the Groundswell Foundation, which has been established to address the growing issue of loneliness and its impact on mental health in Australia.
The Groundswell Foundation has been an ongoing advocate for a NSW parliamentary inquiry into the impacts of loneliness. Last month, the Government announced that inquiry – the media release can be found here.
Vincent Young is a sponsor of the inaugural Groundswell Foundation Gala Ball on Saturday 12 October 2024. We encourage you to support the Groundswell Foundation by attending this black tie event at the Pearl Ballroom, Crown Sydney.
We hope to see you there.
AUSTRALIAN FINANCIAL REVIEW AD
During the year of Covid, in support of a client, Vincent Young attended a sparely attended charity ball. On the night we made a number of low-ball bids during the live auction.
Somehow, we successfully acquired a massive suite of media marketing tools which we had no idea how to utilise.
Years later the AFR have kindly offered three full pages of advertising in substitution.
This is our first of our three adverts.
Vincent Young’s first of three full page AFR ads which appeared on Friday 9 August 2024.
