Insights and news
Rectifying Defects In Residential Buildings
Builders have an obligation to carry out works and complete works in a specified manner and will be responsible to fix defects in residential properties, should they be found after the completion of the works. SCOPE OF DEFECTS A defect is a deficiency in the quality...
Statutory Demands: The Basics
INTRODUCTION Statutory demands are issued by creditors for the payment of a debt which is due and payable according to s 459E of the Corporations Act 2001 (‘the Act’). This guide will outline how to make a statutory demand and tell you what to do if a statutory demand...
Does Your Contract Have Unfair Terms?
INTRODUCTION Unfair terms in certain small business subcontracts entered after 12 November 2016 will now be void due to recent amendments made to the Australian Consumer Law. This summary will assist your understanding on what type of contracts are covered and how the...
Do False Statutory Declarations Disentitle You to Progress Payment Under the Security of Payment Act?
INTRODUCTION Progress claims often require accompanying statutory declarations which confirm that moneys have been paid to subcontractors and suppliers in relation to work that is being claimed. In BRB Modular Pty Ltd v AWX Constructions Pty Ltd & Ors [2015] QSC...
Understanding Indemnities
INTRODUCTION Indemnities are legally enforceable promises between parties to a contract where one party agrees to accept the risk of loss that another party may suffer in a particular situation. Indemnities are used for the purposes of risk allocation and ensure that...
The Effect of False Statutory Declarations on Payment Claims
INTRODUCTION A recent case, J Hutchinson Pty Ltd v Glavcon Pty Ltd, has reinforced the notion that the Court will not allow parties to contract out of the Building and Construction Industry Payments Act 2004 (QLD) (‘the Act’) by imposing additional preconditions to...
Can a Principal Still Recover Liquidated Damages if the Contract is Marked ‘NIL’, ‘N/A’ or $0?
INTRODUCTION Liquidated damages are a pre-agreed amount of damages payable by the contractor to the principal if completion is delayed due to circumstances for which the contractor has no entitlement to an extension of time. THE EFFECT OF N/A, $0 OR NIL If a contract...
Standard Australia’s New Draft Standard ‘AS11000’
UPDATE: STANDARDS AUSTRALIA HAS CONFIRMED THAT AS11000 WILL NOT BE RELEASED, STATING THAT THE CONTRACT 'WAS NOT SUPPORTED BY THE FULL SPECTRUM OF INTERESTS'. INTRODUCTION Standard Australia recently released a new draft General Conditions of Contract named AS11000...
What Does ‘Without Prejudice’ Really Mean and When Can I Use It?
INTRODUCTION ‘Without Prejudice’ is an expression which attaches privilege to written or verbal statements made by parties during alternative dispute resolution. Without prejudice privilege ensures that such statements will not be admissible in court as evidence...
Is Your Neighbour Denying You Access?
INTRODUCTION Developers and contractors may require access to an adjoining property for construction purposes such as: installing rock anchors beneath the adjoining property; erecting, scaffolding or hoarding on the boundary of the sites; having a crane swing...
2015 Reforms to the Home Building Act 1989 (NSW)
INTRODUCTION Major changes to the home building legislation commenced on 15 January 2015. Those changes will affect most players in the residential building sector such as builders, subcontractors, tradespeople, owners, owners corporations, property investors,...
Delay Claims, Time Bars and The Prevention Principle
INTRODUCTION The 'prevention principle' is an established principle under English law whereby a party may not enforce a contract term against the other party where it has prevented the other party from performing that obligation. The prevention principle is closely...