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ARTICLE · 03 APRIL 2024

Enforceability Of HBA Contracts

The Home Building Act 1989 (NSW) (HBA) provides that a residential building contract (contract) must meet certain requirements, such as the contract must be signed...

AustraliaCorporate/Commercial Law

Dyjecinska v Step-Up Renovations (NSW) Pty Ltd  [2024] NSWSC 159 (Dyjecinska case)

The Home Building Act 1989 (NSW) (HBA) provides that a residential building contract (contract) must meet certain requirements, such as the contract must be signed, made in writing and contain sufficient description of the works. If the contract does not meet these requirements, the HBA expressly states that the builder cannot enforce the contract to obtain payment from the owner. However, the court in the Dyjecinska case held that just because a contract failed to meet each of the requirements does not mean a builder is necessarily prevented from enforcing the contract.

In any event, the court held that the builder can always make a quantum meruit claim against the owner outside of the contract.

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