The Design and Building Practitioners Act 2020 (NSW) (Design Act) received assent last week with the Residential Apartment Buildings (Compliance and Enforcement Powers) Act 2020 (NSW) (RBA). The Acts are part of NSW’s response to the flaws in the compliance and enforcement systems in the building industry and the public outcry that has followed the […]
Developers The objective of the RBA is to protect consumers by preventing a developer from carrying out construction work that may result in building defects in residential apartments. The RBA, like the Design Act, has a potentially broad application because the definition of ‘developer’ has been generously drafted. Section 4 says a developer, in relation […]
In TFM Epping Land Pty Ltd v Decon Australia Pty Ltd [2020] NSWCA 93 the Court of Appeal has confirmed that a non-compliant supporting statement by a head contractor will not invalidate a payment claim or render ineffective service of a payment claim under the Building and Construction Security of Payment Act 1999 (SoPA). This 14 May […]
The Appeal Panel’s decision in Ashton v Stevenson (discussed in issue 7, August 2019) has been subject to appeal. At first instance, the Senior Member classified defects to the external balcony and cladding as major defects. The Appeal Panel disagreed and held that those defects were ’minor’. One effect of this decision was that those […]
Defective work—Appeal Panel considers the scope of ‘major’ defect The Home Building Act In Ashton v Stevenson; Stevenson v Ashton [2019] NSWCATAP 67 NCAT’s Appeal Panel considered the vexed question of what is a ‘major’ defect under the Home Building Act 1989 (Act). The concept of ‘major’ defect was introduced by the Home Building Amendment […]
This week’s Four Corners report leaves no doubt that the legacy of Australia’s 20 years of building boom is a high rise residential sector in crisis. Strata schemes and lot owners are grappling not only with the inflammable cladding debacle but with widespread and systemic building defects, often to the structure of buildings or to […]
External cladding fire safety regulations. In November 2017, the NSW Government legislated to ‘ban’ ACP with retrospective effect by the introduction of the Building Products (Safety) Act 2017. In August 2018 the Commissioner issued a Building Product Use Ban (the Ban) for external cladding with a core comprising more than 30% polyethylene. The Ban is […]
Defective building work and the Home Building Act 1989 (HBA). In Hutchings v Hope [2019] NSWCATAP 59, the Appeal Panel clarified whether the two-year limitation period found in section 18E of the Home Building Act 1989 (HBA) altered the six-year limitation period for breach of contract found in section 14 (1) of the Limitation Act […]
Federal Government to review Security of Payment laws. Last year the Federal Government commissioned a review of its nationwide Security of Payment laws. The resulting “Murray Report’ made 86 recommendations including the adoption of a national framework and the extension of the laws to residential building work. Currently, it is only subcontractors working for a […]
The Contractors Debts Act 1997 is often overlooked but, used correctly, can assist unpaid subcontractors, typically tradesmen, suppliers or labourers, when they are owed money by a builder. In these circumstances, the CDA entitles a subcontractor to leapfrog over the builder and obtain payment directly from the principal (or home-owner) who engaged the defaulting contractor. […]
