4 April, 2024
La Niña And Its Effect On Contractors
The last La Niña (wet period) lasted for more than 1 year and ended in March 2023. After a few months of a neutral period, El Niño (dry period) started in September 2023. El Niño was expected to persist until at least the second quarter of this year. However, based…
28 February, 2024
Consequential Loss: The Approach In NSW
Dangers of drafting liability clauses Hadley & Anor v Baxendale & Ors EWHC J70 (Hadley v Baxendale) was a landmark decision in English law defining the classification of different types of loss. However, both the UK courts and academia and the Australian courts and academia have been pursuing modified and…
9 February, 2024
Changes To The Strata Building Bond And Method Of Calculation
The Building Legislation Amendment Act 2023 (NSW) The Strata Building Bond & Inspections Scheme (SBBIS) was introduced in 2018 to provide some protection to owners’ corporations in relation to defects. On 21 November 2023, the NSW Parliament passed the Building Legislation Amendment Act 2023 (NSW) (BLA) which makes 2 significant…
Restraint of trade clauses in business sale agreements must be drafted with enough specificity to avoid being struck out by the Court as unreasonable. This article will provide a few pointers on what not to do when drafting restraint clauses in business sale agreements. What is a restraint of trade?…
1 December, 2023
Unfair Contract Terms Significantly Expanded. Don’t be caught out!
Businesses that employ fewer than 100 employees or with annual turnover under $10 million (Small Business) are now protected by the new unfair contract terms (UCT) regime in standard form contracts. The intention of this new UCT regime is to capture an expanded number of businesses and provide greater protections…
10 November, 2023
Recourse To Security Based On A Bona Fide Claim
Total Construction Pty Ltd v Catholic Healthcare Limited NSWSC 585 It is common for bank guarantees (BGs) to be used as a form of security to secure the performance of a contractor’s obligation in a construction contract. A principal’s right to have recourse to the BGs is often governed by…
7 September, 2023
Always Presume Design Liability
New trends increasing a contractor’s liability – AS4902 Last year we published an article explaining a recent trend concerning the imposition of design liability on contractors through buildability clauses in construct only contracts. In this article we examine another trend concerning increased design liability exposure to contractors’ in design &…
21 July, 2023
Implied Terms In Construction Contracts
When nothing is something Construction contracts in Australia consist of both express and implied terms. Express terms are clearly stated and agreed upon by the parties involved. Implied terms, on the other hand, are "unspoken" but still considered part of a construction contract. This article will consider the concept of…
22 May, 2023
Standstill Agreements Pending Negotiations
Price v Spoor HCA 20 (Price v Spoor) Contractors with defects claims against subcontractors often commence litigation prematurely to preserve their claims from being time-barred. This occurs despite the costly nature of litigation and its potential to undermine settlement negotiations. The High Court case of Price v Spoor has confirmed…