The passing of the Building Legislation Amendment (Domestic Building Insurance New Offences) Act 2024 (Vic) (the Amendment) has introduced new penalties for Builders who fail to obtain Domestic Builder Insurance (DBI), hence, strengthening consumer protection in the construction industry. The changes are relevant for any Builder engaged in a major domestic building contract.
Read MoreAll Australian states and territories introduced legislative security payment legislation to address poor payment practices in the construction sector. Victorian security of payment law is established by the Building and Construction Industry Security of Payment Act 2002 (Act).
Read MoreIn Victoria, the Sale of Land Act 1962 (Vic) (Act) prescribes the various information that shall be disclosed about a property in a Vendor's Statement when selling a property. A failure to comply with the Act may result in a purchaser being able to rescind a Contract of Sale.
Read MoreThe County Court of Victoria handed down its decision of Owners Corporation 1 Plan No PS 707553K and Ors v Shangri-La Construction Pty Ltd (ACN 130 534 244) and Anor [2023] VCC 1473 on 24 August 2023. This case is the first decision relating to a claim of the State of Victoria against a builder for costs to remove combustible cladding. The 2020 amendments to the Building Act 1993 (Vic) (‘the Act’) allow the State of Victoria to make such claims.
Read MoreIn the recent decision of the Victorian Court of Appeal in Thurin v Krongold Constructions [2022] VSCA 226 (Thurin v Krongold), the majority held that the Victorian Civil and Administrative Tribunal (VCAT) lacks jurisdiction to hear and determine domestic building disputes involving the interpretation or application of federal legislation.
Read MoreA recent decision in the ongoing VCAT matter of Owners Corporation PS623721 v Shangri- La Construction Pty Ltd [2022] VCAT 1499 may significantly impact how future claims and defences are pleaded in multi-party building disputes with respect to defective works.
Read MoreThe recent Supreme Court decision in Piastrino v Seascape Constructions Pty Ltd [2022] VSC 202 (Piastrino) provided clarification on the application of the Building and Construction Industry Security of Payment Act 2002 (Vic) (SOP Act) in relation to a mix-use development involving both domestic building work and commercial work.
Read MoreAppointments of a State Building Surveyor (SBS) and a Building Monitor (BM) are two welcome amendments to the Building Act 1993 (Act) made by the Hon Richard Wynne, former Minister of Planning and Minister of Housing.
Read MoreOn 8 June 2022, the Victorian Supreme Court of Appeal (VSCA) confirmed the commencement date of limitation periods under the Building Act 1993 (Vic) (Building Act). Where multiple occupancy permits have been issued for a building project, this decision has significant industry impacts.
Read MoreThere are two types of combustible cladding that present a risk to building occupants, these are aluminium composite panels and expanded polystyrene. The risk is that in an event of a fire, these materials can enhance the speed at which a fire spreads, presenting a threat to residents and those in the immediate vicinity.
Read MoreVCAT has exclusive jurisdiction to hear and determine domestic building disputes between a builder and an owner or a builder and a subcontractor in the state of Victoria. However, the exclusive jurisdiction of VCAT has recently been questioned in light of the significant delays parties are experiencing at VCAT.
Read MoreProperty owners will typically commence legal proceedings against a builder in the event of defective works for a breach of the warranties implied into each domestic building contract. In response to this, a builder may seek to apportion fault to other construction professionals involved in the project such as the building surveyor to reduce its liability to the owners.
Read MoreOn 24 November 2014, a resident, who lived in the 21 storey Lacrosse Apartments in Docklands, left his cigarette burning in a plastic food container on the balcony. Fire quickly travelled up the external walls of the apartment building and everyone within the apartment building was evacuated. The fire resulted more than $12million dollars of damage.
Read MoreFollowing the wide-ranging economic impact of COVID-19, the Australian Federal Government has passed temporary amendments to insolvency, bankruptcy and corporations laws to provide relief for businesses. The changes made, contained in Schedule 12 to the Coronavirus Economic Response Package Omnibus Act 2020 (Cth) (the Act)
Read MoreThe recent NSW Supreme Court decision in Sydney Capitol Hotels Pty Ltd v Bandelle Pty Ltd [2019] NSWSC 1825 confirms that certain claims which are made 10 years after the date of the occupancy permit will not be time barred under section 134 of the Building Act 1993 (Vic). In Victoria, there are two Acts which prescribe limitation periods, namely Section 5 of the Limitation of Actions Act 1958 (Vic); and Section 134 of the Building Act 1993 (Vic).
Read MoreThe recent High Court decision in Mann v Paterson Constructions Pty Ltd [2019] HCA 32 highlights the importance of complying with section 38 of Domestic Building Contracts Act 1995 (Vic) (Act) in order to recover payment for a variation to the works. In March 2014, Mr and Mrs Mann (the Owners) entered into a Master Builders Association Form HC-6 (Edition 1-2007) major domestic building contract with Paterson Constructions Pty Ltd (the Builder).
Read MoreThe State Taxation Acts Amendment Act 2019 which was recently enacted has resulted in significant changes to the “economic entitlement” provisions of the Duties Act 2000. Under the changes, a residential developer will be deemed to have acquired an ‘economic entitlement’ to any income, rent or profits generated from the land and will be subject to a duty as if they had acquired a beneficial ownership interest in the land.
Read MoreIf you are planning to carry out building work on your property, you may be required to carry out protection work to adjoining properties to ensure that they are not affected or damaged by your proposed building work.
Read MoreThe recent decision of VCAT Deputy-President Justice Woodward regarding the widely reported fire in the Lacrosse Tower in 2014 has raised serious liability implications for consultants under separate agreements that are novated to construction contracts, in cases involving combustible cladding.
Read MoreThe new ipso facto regime enacted by the Treasury Laws Amendment (2017 Enterprise Incentives No. 2) Act 2017 in 2017 amends the Corporations Act 2001 (Cth) (Act) by introducing a “stay” to the enforcement of contractual ipso facto provisions that are triggered upon the occurrence of certain insolvency related events. The amendments apply to all contracts entered into on and from 1 July 2018.
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