IN THE MEDIA
National
Construction recovery may not be "long enough and
strong enough" for related businesses
Insolvency firm Ferrier Hodgson has raised concerns that the
improvement in residential construction may not be "long
enough and strong enough" to allow downstream construction
businesses to recover from financial damage suffered over the past
two years (23 April 2014).
More...
MBA: new building code a weapon to boost
productivity
The MBA backs the new building and construction code released by
the Government this week. The code is another weapon in the armour
against building union industrial thuggery that is shackling the
productivity of the building and construction industry (22 April
2014).
More...
ABS building commencements at ten-year
high
The latest figures for dwelling commencements in Queensland
deliver another confidence boost for the state's housing
sector, with quarterly figures returning to 'above average'
for the first time since the start of the GFC (17 April 2014).
More...
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Construction work to slump in mining states, rise in NSW A prominent economic forecaster is warning of a looming downturn in engineering construction, as mining investment grinds to a halt and the Commonwealth and state governments slash spending (14 April 2014). More...
New South Wales
New Sydney airport approval hits turbulence from
industry
After the announcement by Prime Minister of a commitment of more
than $3.5 billion over 10 years to the massive project, serious
gaps in information over rail access and the potential for a curfew
on operations have quickly emerged as the dominant questions facing
the new facility (17 April 2014).
More...
Western Sydney Infrastructure Plan: More jobs, better
roads
A Western Sydney national shared plan, will invest $3.5 billion
over 10 years in major infrastructure upgrades including the
transport links to capitalise on the economic gains from developing
an airport at Badgerys Creek (16 April 2014).
More...
Sydney fast becoming Australia's construction
hotspot says BIS Shrapnel
The NSW Government's record infrastructure building program is
leading to Sydney becoming Australia's construction hotspot,
according to an independent report from leading economic forecaster
BIS Shrapnel (14 April 2014).
More...
Queensland
Real estate hot spots follow in wake of infrastructure
projects
A new wave of property hot spots are predicted to flare up around
Brisbane in the wake of more than $47 billion in planned
infrastructure projects (27 April 2014).
More...
Government plan for priority
infrastructure
The Queensland Government announces new funding incentives for
councils that use a new 'fair value schedule of charges' by
having the State co-invest in Priority Development Infrastructure
in the council's area (17 April 2014).
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Victoria
Landmark fine for kit home builder
A Magistrate has found a kit home supplier and its director guilty
of building a kit home on a Bendigo property without being a
registered builder. The director argued that the company was not
the builder for the project, but that the company supplied the
materials and was subcontracted to the homeowner (22 April 2014).
More...
Court places CFMEU exclusion zone around Bald Hills Wind
Farm site
The Federal Court of Australia has banned the CFMEU from placing
or leaving vehicles or any other equipment within 200 metres of any
entrance to the Bald Hills Wind Farm construction site in South
East Victoria. Fifty-two wind turbines are being constructed at the
site (16 April 2014). More...
Published – articles, papers, reports
Australian Bureau of Statistics
Construction Activity: Chain Volume Measures, Australia, Dec 2013 (cat no. 8782.0.65.001) – 16 April 2014.
Building Activity, Australia, Dec 2013 (cat no. 8752.0) – 16 April 2014.
Practice and courts
Security of payment legislation changes in Australia:
key dates
Significant changes have been made to security of payment
legislation in NSW & Queensland, effective this year (17 April
2014).
More...
Building and Construction Industry Payment Act
1999 NSW
The amendments commence on 21 April 2014 and will apply to
contracts entered into from the 21 April 2014.The amendments
include penalties of up to $22,000 and/or three months in prison
where it is discovered a head contractor knowingly provides false
information. Head Contractors are advised to review and implement
enhanced administrative processes as soon as possible.
More...
Building and Construction Industry Payments Act (BCIPA)
QLD
These amendments are likely to take affect from 1 September 2014.
Three key areas of reform which will apply to contracts entered
into from this date include: Appointment of Adjudicators and
Adjudication Process; Timeframes for Claimants and Respondents and
Provision of Additional Information. More...
VBA: Do your homework before buying a kit
home
Victorians wanting to construct a kit home should do their
homework to ensure it is built to code. Anyone interested in
purchasing a kit home should ensure they use a reputable supplier,
and research the building and planning requirements for the
particular region before getting started. Licensed tradespeople,
such as plumbers and electricians, should be used to complete the
installation.
More...
Cases
Intercon Engineering Pty Ltd v Lend Lease Project
Management & Construction (Australia) Pty Ltd; Christopher John
Wright v Lend Lease Project Management & Construction
(Australia) Pty Ltd [2014] NSWSC 441
CONTRACT - construction - whether subcontract incorporated terms
of head contract – uncertainty – both proceedings
dismissed. More...
Nefiko Pty Ltd v Statewide Form Pty Ltd [2014]
NSWSC 442
Application for interlocutory relief dismissed. BUILDING AND
CONSTRUCTION - Building and Construction Industry Security of
Payment Act 1999 (NSW) - adjudication determination - whether
denial of natural justice - jurisdiction of adjudicator - whether
adjudicator took into account all relevant factual matters.
Building and Construction Industry Security of Payment Act
1999 (NSW). More...
CMF Projects P/L v Riggall & Anor [2014]
QDC 090
BUILDING ENGINEERING AND RELATED CONTRACTS – REMUNERATION
– STATUTORY REGULATION OF ENTITLEMENT TO AND RECOVERY OF
PAYMENT – DOMESTIC BUILDING CONTRACTS ACT 2000 ss 55(2),
55(3), 55(4) – effect on other remedies – where
building contractor did building work pursuant to cost plus
contract – where contract a regulated contract – where
contract did not contain a fair and reasonable estimate by the
building contractor of the amount which the building contractor was
likely to receive under the contract as required by s 55(3) –
whether builder may recover on quantum meruit basis from District
Court. ESTOPPEL – BY REPRESENTATION – EFFECT OF
STATUTORY PROHIBITION AGAINST CONTRACTING OUT – where builder
alternatively claims that owners estopped from disputing that
builder's quantum meruit claim may be brought in the District
Court – whether s 55 confers rights which it is in the public
interest to maintain – where s 93(2) prohibits contracting
out of the Act – whether s 93(2) relevant to whether owner
estopped from disputing builder's quantum meruit claim –
whether builder confined to claim in tribunal under s 55(4).
PRACTICE AND PROCEDURE – Pleadings – whether to strike
out statement of claim and parts of reply and answer – where
plaintiff seeks to allege that monies claimed are a debt due upon a
fully executed contract rather than money payable pursuant to
contract – whether plaintiff obliged to plead that contract
fully executed or whether defendant obliged to plead that the
contract was not fully executed – UCPR r 153 – whether
the allegation that contract was fully executed is a condition
precedent for the case of the plaintiff which may be implied in the
plaintiff's pleading. PRECEDENTS – stare decisis –
whether statement in a judgment of the Supreme Court was obiter
dictum or ratio decidendi – where obiter dictum on
interpretation of statute –whether appropriate to follow the
obiter dictum without reconsidering the point. More...
Queensland Building & Construction Commission v
Robuild Pty Ltd [2014] QCA 081
ADMINISTRATIVE LAW – ADMINISTRATIVE TRIBUNALS –
QUEENSLAND CIVIL AND ADMINISTRATIVE TRIBUNAL – where a
tribunal member of the Queensland Civil and Administrative Tribunal
(QCAT) found that the applicant, Queensland Building Construction
Commission, had not effected proper service of an infringement
notice on the respondent – where the appeal tribunal of QCAT
refused leave to appeal the tribunal member's decision –
where the applicant sought leave to appeal what were said to be
errors of law by the appeal tribunal – whether any question
of general importance was involved – whether any substantial
injustice had resulted from the appeal tribunal's decision
– whether leave should be granted to appeal- refused. More...
Eliana Construction and Developing Group v
Assad [2014] VSC 143
CONTRACT – Oral agreement for residential building project -
Whether transaction was a loan or joint venture – Finding of
joint venture from the outset of the project – Loan claimed
– Finding that no loan agreement entered into from the outset
of the project – Settlement of project disputes – Joint
venture ceases - Proceeding referred for the taking of accounts and
inquiry. EVIDENCE - Oral agreement for residential building project
– Whether transaction was a loan or joint venture -Credit of
witnesses found wanting – Findings made largely on
contemporaneous documentation - Paucity of documentary evidence of
entitlement of liability. More...
White v Noble trading as WR and EM Noble (Domestic
Building) [2014] VCAT 413
Claim for damages for defective domestic building works brought by
a subsequent owner of a home constructed by builder pursuant to a
building contract with previous owners of the home. Claim brought
against the builder and the relevant building surveyor. Claim as
against the surveyor settled prior to hearing. Applicant's
claim not time barred. Claim as against the builder succeeds.
Sections 8 and 9 of the Domestic Building Contracts Act 1995. No
breach of duty of care owed by the surveyor. No apportionment of
liability under Part IVAA of the Wrongs Act 1958. Settlement
payment made by the surveyor to the Applicant taken into account,
per the principle against double recovery, in assessing the damages
payable by the builder. The First and Second Respondents must pay
the Applicant $85,195.46. More...
Hyndman v Hurtob Homes Pty Ltd (Domestic
Building) [2014] VCAT 380
Domestic Building – cost plus contract - Owner taking over
aspects of work – delay – responsibility for –
party wall in Class two building – sound transmission –
ordinary brick ties used – wall of continuous construction
– no special ties specified – no breach by Builder
– Wrongs Act 1958 Part IVAA – claim against
builder for breach of building contract not an apportionable claim.
Order the Respondent to pay to the Second Applicant $67,173.12. More...
Legislation
NSW
Commencing Acts
Building and Construction Industry Security of Payment Amendment Act 2013 No 93 (2014-182) ( to amend the Building and Construction Industry Security of Payment Act 1999 with respect to the timing of, and other requirements for, payments under construction contracts), commenced on 21/04/2014.
Regulations and other miscellaneous instruments
Building and Construction Industry Security of Payment Amendment (Supporting Statement) Regulation 2014 (2014-185) — published LW 11 April 2014 ( for a prescribed form requiring all relevant contracts between head contractors and subcontractors to be listed and identified as either paid or in dispute) commenced on 21/04/2014.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
