News
Renovation activity grows, but new housing activity
falls
ABS figures released showed new housing activity in the June
2011 quarter falling while renovation activity continues to grow.
Tthe volume of major alterations and additions work done, which
accounts for around 20 per cent of total renovations activity,
increased by 2.6 per cent (20 October 2011)
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Outrage at loss of the building industry
cop
Building industry groups are demanding the Government review
its decision to abolish the Australian Building and Construction
Commission (ABCC). This week the Australian Government announced
its intention to introduce the Building and Construction Industry
Improvement Amendment (Transition to Fair Work) Bill 2011 into
Parliament which will abolish the ABCC (13 October 2011)
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New legislation to boost investment in NSW home
building
The NSW Liberals and Nationals Government will this week
introduce legislation to stimulate investment and activity in the
State's home building industry by urgently addressing a number
of shortcomings in the Home Building Act 1989. Work is underway to
address the broader issues with the legislation with a thorough
review of the Act scheduled in 2012 (11 October 2011)
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Coal Seam Gas appeal in Land and Environment
Court
In what's being described as an important test case, the
is hearing the concerns the Gloucestor Stroud Preservation
Alliance, who has lodged an appeal against the approval granted to
AGL's coal seam gas project in the Gloucestor Stroud Valley (17
October 2011)
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Gas firm sues officials over project
refusal
Cougar Energy has filed a $34 million lawsuit in the
Queensland Supreme Court alleging negligence and breach of
statutory duty when the government stopped the $550m underground
gasification project (18 October 2011)
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Queensland renovation savings in new
legislation
One of the aims of the wide ranging bill was to amend the
Plumbing and Drainage Act to cut red tape and reduce compliance
costs, according to the Local Government Minister. Under the
proposed changes, a wider range of works would no longer require
council assessment or inspection. Standards will still need to be
upheld with the Plumbing Industry Council notified of any works,
self assessment carried out (11 October 2011)
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Positive signs start to emerge for the Building
Industry
Master Builders Director of Housing Policy, Paul Bidwell said
the latest report sees business sentiment remain in negative
territory for the fifth quarter in a row, but optimism is slowly
starting to emerge, according to the latest Survey of Industry
Conditions report released by Master Builders (20 October 2011)
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Articles
Guide to Standards - Energy Efficiency
Author: SAI Global: Standards Australia Provides a snapshot of
information on Standards and Certification schemes and covers
topics such as: Good management practice; Climate change;
Alternative energy sources including wind turbines and solar
energy; Energy efficiency for buildings; Energy efficiency for
electrical equipment; and much more. This guide is a valuable
resource for organizations who are increasingly faced with the
challenges concerning energy efficiency and climate change (10
October 2011)
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Dispute review boards in Australia: past, present and
future
Author: Paula Gerber
Australasian Dispute Resolution Journal, 2011, Vol 22, August,
pp180-191
Benefits to the construction industry around the world through
the use of dispute review boards (DRBs) - success rates for
completion of projects - analysis of the limited use of DRBs by
projects .
Practice Notes
Australian Standards - Minor Works
Contracts
Minor Works Contracts are contract forms that are intended to
be used for construction projects of a simple nature and are best
suited for small construction projects only of limited monetary
value. AS 4905-2002 provides for administration by a Superintendent
(i.e. Administrator or Manager) whereas AS 4906-2002 provides for
administration by a Principal (i.e. Owner) M
ore...
Funding for Remote Airstrip Available
All remote airstrip owners can apply for Federal funding for
upgrades to improve vital air access to outback communities. These
upgrades can include anything from lighting to fixing airstrip
surfaces or building animal proof fences. The Program does not
cover landside works including terminals, hangars, buildings or
commercial developments. Applications close on Thursday 1 December
2011 (19 October 2011)
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Commercial Building Disclosure program - November 1
lighting tool deadline
The Department of Climate Change and Energy Efficiency has
released more information on the expanded Commercial Building
Disclosure program. New rules start on 1 November, requiring a
lighting assessment of affected office space before it can be sold
or leased.
Click here to download the quick guide to CBD.
Click here to
access video and presentations from the Department's recent
seminar series. (18 October 2011)
Current Draft Policies and Plans, Announcements
NSW: Expression of Interest (EOI): Councils to join Electronic
Housing Code (EHC) project
The Electronic Housing Code (EHC) pilot project management
office is looking for 24 additional Councils to join the project.
Once interested parties have returned their EOI, an independent
selection panel will convene to select the additional Councils. The
relevant documents are found on the website (10 October 2011)
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QLD: Master Builders Roadshow
Rebuilding the building industry one business at a time will
be at the top of the agenda as Master Builders sets off on its
annual 2011 Roadshow throughout Queensland in November (19 October
2011)
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QLD: Building and plumbing newsflash number 482 -
Proposed plumbing and building reforms and revised pools
guideline
Proposed amendments to plumbing and building laws are included
in the Sustainable Planning and Other Legislation Bill 2011 (the
Bill) introduced into the Legislative Assembly on 11 October 2011
and a new guideline for pool owners and property agents is
available (14 October 2011)
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Cases
Commonwealth
Birdon Pty Ltd v Houben Marine Pty Ltd [2011] FCAFC
126
ADMIRALTY – whether a charter agreement is a
construction contract – liability of parties pursuant to
an agreement for the hire of a back hoe dredge vessel –
whether having invoked federal jurisdiction in proceedings in the
Federal Court an adjudication application under a State Act can be
pursued – whether the State Act purports to withdraw the
Federal Court's authority to quell a controversy within its
jurisdiction – source of rights and remedies in federal
jurisdiction – application of surrogate federal laws
– maritime claim – admiralty jurisdiction in
personam
CONSTITUTIONAL LAW – operation and effect of the
Constitution – conflict between State and Federal
legislation – whether Part 3 of the Building and
Construction Industry Security of Payment Act 1999 (NSW) regarding
the enforcement of a statutory claim for progress payments is
inconsistent with the institutional integrity of Chapter III Courts
– exercise of Commonwealth judicial power
CONSUMER LAW – Australian Consumer Law –
misleading and deceptive conduct.
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New South Wales
Walton v Illawarra [2011] NSWSC 1188
BUILDING AND CONSTRUCTION - contract - interpretation of
contract - nature of superintendent's task - whether
contractor's entitlement to extensions of time and payments are
limited to those so determined by superintendent - extent to which
liability flowed to principal for superintendent's failure to
adequately perform tasks - DAMAGES - quantification - damages for
shortfall between entitlement and superintendent's valuation- -
whether recovery constrained by contract - damages for delay in
practical completion - whether loss too remote - entitlement to
interest.
Building and Construction Industry Security of Payment Act 1999
(NSW); Industrial Relations Act 1996 (NSW)
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The City of Sydney v Streetscape Projects (Australia)
Pty Limited & Anor [2011] NSWSC 1214
Streetscape Projects (Australia) must deliver up documents and
moulds to the City [515] -[543]. Proceedings brought by City of
Sydney against Streetscape Projects (Australia) and Mr Moses Obeid
in relation to "Smartpole" poles
CONTRACTS - Action for breach of contract - Contractual
interpretation - Confidential information - Deeds of variation -
Whether particular clauses were penalty clauses - Claim that
plaintiffs suffered no loss - Distinction between liquidated
damages clause and penalty clause - Damages when proof of loss is
difficult - Foreign law- Presumption of identity - Principles for
interpreting terms of a contract to avoid capricious
consequences
EQUITY - Equitable duty - Duty of confidence - Fiduciary duty
- Fiduciary duty under a commercial contract -Accessorial liability
- Barnes v Addy
ADMINISTRATIVE LAW - Ultra Vires - Scope of Local Councils
authority - Broad interpretation
TRADE PRACTICES CLAIM - Misleading and deceptive conduct -
Section 52 Trade Practices Act - Proof of representations -
Reliance on representations - Failure to take reasonable
care-Section 51A Trade Practices Act - Misleading representation as
to future without reasonable basis-No need to prove reliance -
Appropriate relief under Section 87 (2) of Trade Practices Act -
Varying the terms of a contract for misrepresentation.
More...
Buckley v Integrity New Homes (Home Building) [2011]
NSWCTTT 436
Meaning of liquidated damages clause where parties agree
quantum to be determined by "Dept of Fair Trading"
– interpretation and enforceability Respondent builder
liable to pay damages where stipulated date of completion exceeded
by 110 days - liquidated damages clause provides mechanism for
determining amount payable and is enforceable - damages awarded for
accommodation, removal and storage and expert report - other claims
dismissed.
More...
Nestel v Wesfarmers General Insurance Limited (Home
Building) [2011] NSWCTTT 430
Appeal against the denial of an insurance claim - Darryl
Millar and Linda Millar have "disappeared" for the
purpose of s 99(1)(a) of the Home Building Act 1989 and Regulation
52(3) Court does not accept that the homeowner must attempt
enforcement against the builder outside of New South Wales as a
prerequisite to making an insurance claim.
More...
Ioannou v Damico & Ors (Home Building) [2011]
NSWCTTT 475
A money order for $25,432.00 No contract by trader, trader
unlicensed at time of performing work, misleading and deceptive
conduct by trader, breach of contract by trader.
More...
Queensland
Macarthur Coal Ltd & Anor v MCG Coal Holdings Pty
Ltd & Ors [2011] QSC 303
PROCEDURE – MISCELLANEOUS PROCEDURAL MATTERS
– OTHER MATTERS – where the matter was set down
for trial – where the second, third and fifth de
fendants applied to adjourn the trial – where the
applicants argued that they could not be prepared for the trial
– where the applicants argued that counsel and a
solicitor would be unavailable – where the applicants
argued there was late and defective disclosure – where
the plaintiffs argued that the matter required an urgent trial so
that development of the subject coal mine would not be further
delayed – where the plaintiffs argued that the applicants
were refusing access to the subject land to perform expedition work
–whether the trial should be adjourned.
More...
Queensland Building Services Authority v Alternate
Dwellings Pty Ltd [2011] QCAT 460
Penalty – Exceeding Annual Allowable Turnover
– mitigating factors – breach due to failure to
understand policy.
More...
Barry v Queensland Building Services Authority and Ors
[2011] QCAT 451
Building matter – direction to rectify by authority
for defective workmanship – where contractor seeks to
join property owners and sub-contractor – where
allegations actions by property owners affected work –
where direction issued to applicant as head contractor.
More...
Discovery Beach Project Pty Ltd v Northbuild
Construction Pty Ltd [2011] QSC 306
ARBITRATION – THE AWARD – EFFECT AND
PERFORMANCE – CONCLUSIVENESS OF AWARD – where
applicant and respondent had referred various disputes to either
arbitration or expert determination arbitrations of building
dispute – where arbitrator in a "Final Claim
Arbitration" provided for an interim award that would decide
all disputes not already in other fora – where arbitrator
directed that pleadings, lists of disputes in other fora, and lists
of remaining claims be delivered for the purpose of hearing the
interim award – where respondent included certain breach
of contract claims in its pleadings and included these claims in a
table of items to be decided by the interim award – where
respondent did not adduce any evidence in support of breach of
contract claims or address them in submissions – whether
breach of contract claims were determined by the interim award.
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Western Australia
PERRINEPOD PTY LTD -v- GEORGIOU BUILDING PTY LTD [2011]
WASCA 217
Administrative law - 'Jurisdictional facts' -
Principles - Whether matters in s 31(2)(a) Construction Contracts
Act 2004 (WA) are 'jurisdictional facts' Administrative law
- Whether adjudicator's exercise of powers under s 31(2)
Construction Contracts Act 2004 (WA) amenable to prerogative writs
of prohibition and certiorari - Construction of privative
clause
Building and construction - Security of payment legislation -
Application for review to State Administrative Tribunal pursuant to
s 46(1) Construction Contracts Act 2004 (WA) - Construction of s 31
and s 46 - Whether review available where an adjudicator refuses to
dismiss an application for adjudication under s 31(2)(a).
More....
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.