Construction Law Update May 2020

1 minute read + PDF download  17.06.2020 Andrew Hales, Andrew Orford, David Pearce, James Kearney, Nikki Miller, Owen Cooper

In our May edition of CLU, we provide an update on the changes to the National Construction Code under the National Construction Code 2019 Amendment 1. We also cover decisions made by the New South Wales, Queensland, South Australian and Victorian Supreme Courts, as well as the NSW Court of Appeal, South Australian Federal Court and the Victorian Civil and Administrative Tribunal.

Your May 2020 edition is now available.
You can also access past editions.

The New South Wales decisions consider the risks associated with a failure to adequately plead, particularise and present a party's case; the circumstances in which an adjudicator who fails to expressly consider a contractual argument raised in adjudication will fail to comply with the NSW SOP Act; the Court's interpretation of a narrowly drafted arbitration clause; whether the Court will make an order for rectification works in circumstances where damages are being sought; a builder's entitlement to obtain legal or equitable interest in land for the performance of work under the Home Building Act; and whether service of a payment claim is invalidated by a claimant's failure to serve a head contractor's supporting statement.

The Northern Territory case reiterates the importance ensuring that both parties follow the correct contract formation processes. The Queensland Supreme Court decision considers whether a flagrant breach of a restrictive covenant and court imposed injunction will be grounds for a mandatory injunction. The South Australian decisions consider procedural fairness in adjudications; what the court will consider when assessing whether work the subject of a payment claim was performed within the six months before the claim; and the circumstances in which a builder's failure to perform work may not give rise to damages in the nature of rectification costs. Finally, Victorian decision re-affirms that, in cases involving the VIC SOP Act, a superior court will be more unwilling to grant a stay of judgment pending any appeal.

Legislative Update

Changes to the NCC confirmed – no new definition of 'building complexity' and deferred commencement of a new process to document Performance Solutions | National Construction Code 2019 Amendment 1

In the Australian courts

New South Wales

Make your case – the 3Ps of litigation | Cubic Metre Pty Ltd v C & E Critharis Constructions Pty Ltd [2020] NSWSC 479
What we've got here is a failure to consider | Diona Pty Ltd v Downer EDI Works Pty Ltd [2020] NSWSC 480
Chickens and narrow arbitration clauses: what could go wrong? | Inghams Enterprises Pty Limited v Hannigan [2020] NSWCA 82
Builders to pay up if they don't fix it up | Ippolito v Cesco [2020] NSWSC 561
The unappealing appeal of an unlicensed contractor | Lawrence v Ciantar [2020] NSWCA 89
No supporting statement? No worries! | TFM Epping Land Pty Ltd v Decon Australia Pty Ltd [2020] NSWCA 93

Northern Territory

NT Court of Appeal confirms authority is still essential to creating a binding contract | Halikos Hospitality Pty Ltd & Ors v INPEX Operations Australia Pty Ltd [2020] NTCA 4

Queensland

Indemnity costs awarded in response to flagrant covenant and injunction breaches | BGM Projects Pty Ltd v Durmaz Corporation Pty Ltd [2020] QSC 87

South Australia

Not fair adjudicator – jurisdictional error found where decision based on points not raised by the parties | Ausenco Operations Pty Ltd & Anor v Ferretti International Ottoway Pty Ltd & Anor [2020] SASC 46
Long stop date on payment claims and running accounts | Commercial Fitouts Australia Pty Ltd v Miracle Ceiling (Aust) Pty Ltd & Ors [2020] SASC 11
Rectification costs not always guaranteed for defective work | Tincknell v Duthy Homes Pty Ltd [2020] SASCFC 24

Victoria

Should I stay or should I go (ahead and pay)? | ASEA 1 Pty Ltd v Rudyard Pty Ltd [2020] VSCA 122
Challenging the finality of final progress certificates under building contracts | Kelly v Lombardi (Building and Property) [2020] VCAT 284

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