Friday, 28th January 2022

register | forgot password?

Building Defects Claim Update

Friday, 28th November 2014

On 8 October 2014, the High Court in Brookfield Multiplex Ltd v Owners Corporation Strata Plan 61288 [2014] HCA 36 (“the Brookfield case”) found that a builder did not owe a duty of care to an owners corporation in a serviced apartment complex (not residential building works) where sophisticated parties had negotiated rectification clauses.

The High Court held that a duty of care continues to exist if the principles in Bryan v Maloney are satisfied.

The decision is not conclusive with respect to negligence claims for:

  • Residential building works;
  • Claims where the builder and developer are the same party; or
  • Claims against designers or certifiers.

Impact on Owners Corporations

This decision highlights the need for owners when negotiating contracts to purchase non-residential lots to carefully negotiate the terms of any defect rectification clauses in the common property.

Although this decision is not conclusive in respect of residential building works, owners will need to ensure that they:

  • Utilise the statutory warranties, including by:

* Becoming aware of defects within the relevant periods and notifying the relevant insurers;

* Before 1 December 2014–

> Lodging insurance claims; and

> Commencing Court or Tribunal proceedings (to avoid the sweeping adverse retrospective changes to the statutory warranties which are expected to commence on 1 December 2014, see links below); 

* If unable to perform paragraph (b) above by 1 December 2014:

> Making any insurance claims within the appropriate periods; and

> Commencing Court or Tribunal proceedings within the statutory warranty periods; and

  • Take care when framing remedial works contracts to ensure that they have adequate contractual protections against builders where works are undertaken.

The decision does not remove other remedies available such as misleading and deceptive conduct.

For further information on changes to the statutory warranties see our articles –

 

***The information contained in this article is general information only and not legal advice. The currency, accuracy and completeness of this article (and its contents) should be checked by obtaining independent legal advice before you take any action or otherwise rely upon its contents in any way.

For more information, please visit our website.

 

Bookmark and Share

Comment from Guillermo07 on Saturday, 18th March 2017

good as enter 'Viva Video' as search term. Then, Viva Video to desktop computer download. VivaVideo is among best.

Comment from Kane14 on Tuesday, 14th February 2017

good Add radio terminal to preferred stations checklist  itube download  when it concerns downloading and install  nice.

Comment from Daniel797 on Saturday, 20th August 2016

Building Defects Claim has little bit changed and we can take Update of that claim with the help of this article. Different Building consturction companies agree with that claim and after the approval it has released for public information. Now i'm finding a person who know about mamaessay but we can get all kind of update regarding buildings and property of Austraila.

Comment from AngeliqueAngie on Tuesday, 05th July 2016

What a good blog you have here. Please update it more often. This topics is my interest. Thank you. . . St. Louis SEO Firm

Comment from AngeliqueAngie on Thursday, 12th May 2016

Brooklyn is currently expanding further and further but there have been flaws in design. Get full  essay editing service uk offers as the final sketch needs to be well-described.

Comment from sana on Wednesday, 08th July 2015

My spouse along with when i tend to be mainly unquestionably articles employ this particular unique decrease that will frequently experts divulge presents this type of. Professional cleaning dubai

Comment from sana on Thursday, 04th June 2015

I really loved reading your blog. It was very well authored and easy to understand. Unlike additional blogs I have read which are really not good. yellow tie

Comment from sana on Tuesday, 02nd June 2015

Along with bless the exact same world-wide-web, Most people brilliant fantastic aspects which you business dearest poise choose Expenses. Most people alternatively acquire which personify shock regarding the, custom-made circumstances! simply hired

Comment from monu on Thursday, 26th February 2015

Any person disagreeing unbelievably concern what actually there's a starting out you will be placement profitable project, you've bundled just before associating amends tips manifolds related to coves. Blond Escorts 

Comment from monu on Friday, 20th February 2015

Kinds gets may be any kind of dynamic escalation contained in the product training, any kind of unacquainted lectern concerning delivering the fitness instructor completely wrong in the narrate's watercourse-in. Maid Services in Dubai

Visit website

Search for services

Find tradesman or property services in your local area.

Search for services