The next phase of building reform in NSW begins

In January 2020, the NSW Government announced its legislative strategy to restore public confidence in the building sector by 2025. The next phase has now commenced with the introduction of four proposed changes to the legislative framework. The proposed bills and regulations are open for public consultation and will be introduced in NSW Parliament in […]

Latent Defects Insurance likely to be a game-changer in NSW

A new insurance product, Latent Defects Insurance (LDI), is set to transform the insurance framework for high-rise residential buildings – especially if it becomes mandatory in New South Wales. This major development is aimed at restoring consumer confidence in the NSW residential construction industry in the context of the state’s “building compliance crisis” and its […]

The expanded scope of building practitioners’ duty of care

Boulus Constructions Pty Ltd v Warrumbungle Shire Council (No 2) [2022] NSWSC 1368 When the Design and Building Practitioners Act 2020 (NSW) (DBP Act) came into effect, section 37 imposed a new duty on building practitioners and persons who carry out construction work to exercise reasonable care to avoid economic loss to building owners, including […]

Cladding decision highlights need for plaintiff’s specific proof

Strata Plan 92450 v JKN Para 1 Pty Ltd & Toplace Pty Ltd [2022] NSWSC The Supreme Court of NSW recently handed down a decision on a damages claim regarding building cladding. The Court found that the plaintiff had failed to demonstrate that cladding was combustible and that an ‘alternative solution’ could not be performed […]

Rise and fall clauses could be another tool to hang on a constructor’s belt

With construction industry participants seeing an increase in costs, rise and fall clauses have been floated as a solution for easing current cost pressures. Essentially, a rise and fall clause in a construction contract shifts key project pricing risks from the contractor to the principal. In this update, W+K’s Construction PI specialists Aaron Bolton, Robert […]

Risk profile for construction professionals rises with new Supreme Court decision

Following the recent decision in Goodwin, the Supreme Court of NSW has handed down another decision that considers the scope of the duty arising under the DBPA and to whom it is owed. In Pafburn, the court established the duty is prima facie owed by those who are able to control how the construction work […]

NSW Supreme Court clarifies scope of statutory duty of care for construction industry

On 19 May 2022, the Supreme Court of NSW handed down the first substantive decision on the application of the statutory duty of care introduced by Part 4 of the Design and Building Practitioners Act 2020 (NSW) in June 2020. The effect of this judgment is that, arguably, the statutory duty of care extends to […]

Model guidance for consistent national construction reforms

The ABCB has issued an Implementation Report and model guidance documents that address most of the recommendations contained in the 2018 Building Confidence Report. These developments are the latest in an ongoing effort to address building defects and failures Australia-wide. While significant consumer and industry benefits associated with consistent adoption of the model guidance have […]

Construction trends – checking the rear vision mirror while keeping an eye on the road ahead

The past year in the construction industry has been punctuated by a collection of legislative reforms, pandemic responses and technology advances. It’s also been a challenging time in which the industry has been dealing with the continued fallout from market-shaping events, such as the Lacrosse and Grenfell Tower fires, and heightened rates of insolvency. Against […]

General Liability Trends Update: Towards 2022

2021 presented the general insurance industry with many uncertainties. Our 2020 GL Trends Report provided foresight into several trends that have impacted, and continue to impact, the general liability market in Australia and New Zealand, including historical abuse claims across different sectors, concussion and its impact on sport, as well as COVID-19 risks as it […]