When do you have to let the builder back in to fix defects?
When do you have to let the builder back in to fix defects? A recent decision by the Supreme Court of New South Wales, The Owners – Strata Plan 89041 v Galyan Pty Ltd [...]
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Building & Construction
High Court declares that Mutual Recognition Scheme means what it says…
High Court declares that Mutual Recognition Scheme means what it says... In today’s economy and with an increasingly mobile workforce, the mutual recognition scheme is more important than ever. A recent High Court of [...]
Combustible Cladding and the Lacrosse tower
Combustible Cladding and the Lacrosse tower: Owners Corporation No 1 of PS613436T v LU Simon Builders Pty Ltd & Ors [2019] VCAT 286BackgroundIn November 2014 a fire broke out on the balcony of an apartment [...]
Licence to Lend? Why lending your Building Licence is riskier than you think
Licence to Lend? Why lending your Building Licence is riskier than you think Background The practice of Registered Building Practitioners (RBPs) lending out their builder’s licences to others in return for a fee is [...]
The Victorian Building Authorities’ Statutory Powers to Issue Directions to Fix Limited by the Supreme Court
The Victorian Building Authorities' Statutory Powers to Issue Directions to Fix Limited by the Supreme Court L U Simon Builders Pty Ltd v Victorian Building Authority [2017] VSC 805 In November 2014 a fire [...]
Night of the Living Dead – Permitted Individual Application rises from the grave to save Raptis (and possibly others)
Whilst receiving a notice from QBCC is a serious, significant matter, it is important that you do not always assume the notice is valid. The following recent case highlights this point. Background RT No [...]
Australia’s Construction Industry Insolvency Crisis – Reform Is Underway
There are calls for urgent intervention from the Commonwealth Government to address the insolvency thousands of Australian contractors and subcontractors face when participants higher in the payment chain become insolvent or fail to pay. One [...]
Pitfalls with suppliers terms and conditions and how to avoid them
Here is a common scenario we see all the time in the construction industry. You enter into a construction contract which has specifications that require you to install a particular product, for example, a bath, [...]
New Security of Payment provisions finally to come into effect – but next stage of Project Bank Accounts pushed back
The Queensland government has announced that the Security of Payment provisions of the Building Industry Fairness (Security of Payment) Act (BIFA) will commence on 17 December 2018. This will mean significant change for those in [...]
“It’s okay, you won’t need a licence….”; another contractor falls afoul of the QBCC licensing regime
The licensing regime erected by the Queensland Building and Construction Commission Act 1991 (Qld) (QBCC Act) is, to quote Churchill “a riddle, wrapped in a mystery, inside an enigma”. That said, if you want to [...]
The latest for contractors on repayment demands based on alleged ‘unfair preference’
Given the spate of insolvencies in the construction industry, it is unsurprising that we have acted for a number of contractors who have received correspondence from liquidators: asserting that certain payments made to the particular [...]
Onerous Contract Provisions – Client Guide
Introduction There is an imbalance between the rights and obligations and hence liabilities and risks, borne by sub-contractors as against contractors. Risk is increasingly being shifted onto the sub-contractor ignoring the fundamental principles of good [...]
Invoices and progress claims in Queensland will no longer need to state they are a payment claim to be one
When the security of payment provisions of the Building Industry Fairness (Security of Payment) Act 2017 (QLD) (BIF Act) commence, which is expected to be in July 2018, it will no longer be necessary to [...]
Practical completion and service under security of payment legislation
A New South Wales security of payment case could be an indicator of how Queensland security of payments legislation may be interpreted by the Queensland courts. For a payment claim to be valid there must [...]
Beware when signing Form 15 – you may be personally liable
In a recent case the Queensland Court of Appeal held an engineer personally liable for signing an incorrect Form 15 (compliance certificate for building design or specification). The exact damages payable are yet to be [...]
New security of payments laws…learn all about it or pay the price
These tips help explain why all contractors need to attend the upcoming workshops about the tough, new security of payments laws. You will also see why your contract administrators and project managers must also attend. Tip 1 – [...]
QBCC changes tune on defective work
The QBCC has recently released a statement confirming their approach to defective building works and the issuing of Directions to Rectify. Whilst it is good news when the QBCC clarifies their position on such an [...]
Non-conforming products – a tragic reminder
The recent tragedy at the Grenfell Tower in London highlights the importance to contractors of the risks and dangers in utilising non-conforming products. Grenfell Tower was a public housing building, with over 129 flats. It [...]
Adjudications, unfair contracts and much more…as seen by registered adjudicator
I am a Registered Adjudicator under the Security of Payment Act. I have decided dozens of adjudication applications. One of the things that never ceases to astound me is how poorly prepared adjudication applications often [...]
Is it a liquidated damage or an unenforceable penalty?
Contractors have been faced with uncertainty in relation to the enforceability of liquidated damages clauses since the decision of the High Court in Andrews v Australia & New Zealand Banking Group Ltd (2010) 247 CLR [...]
Is there another way to achieve a better result with your next enterprise agreement?
Major contractors are about to commence renegotiating their Enterprise Agreements with the Electrical Trades Union. There continues to be a lack of confidence in the economy. There is a very small number of major projects in the pipeline for [...]
What other documents should you submit with your progress claims?
Many contracts require contractors to provide statutory declarations or other specified documents before, or at the time of, issuing a progress claim. A recent decision of the Supreme Court of Queensland considered whether these conditions [...]
$313,500 fine for sham contracting! It pays to minimise your risks arising from contracting arrangements
Beware, the ATO is aggressively auditing businesses for sham Contracting Arrangements and for unpaid superannuation under the “super for contractors” laws. Many businesses are aware that there are serious risks for sham contracting. They are [...]
Liquidated Damages can destroy your profit… and your business
Failure to complete work on time, often leads to liquidated damages or “LD’s” being applied, robbing you of any profit in the job and sometimes worse. In a recent case, the contract provided that Practical [...]
Tips for making an Adjudication Application
Brisbane Partner Michael Cope is an Advanced Adjudicator for the purposes of the Building and Construction Industry Payments Act. The following are common mistakes made by applicants and how you can avoid falling into the [...]
Reference Dates under the BCIPA …An important clarification
The Queensland Supreme Court has provided an important clarification of what restrictions can be put by a builder in a contract on your right to deliver a Payment Claim under the BCIPA. As readers will [...]