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ARTICLE · 04 APRIL 2024

Recent cases benefit NSW councils in disputes with contractors

Bartier Perry Solicitors
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It is now easier for NSW councils to sue contractors for defective work and to resist payment claims under the SOP Act.

AustraliaGovernment, Public Sector
David Creais
David Creais
Breitil Sulaiman
Breitil Sulaiman
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Two recent cases in the Supreme Court of NSW have made it easier for councils to prosecute claims against contractors for defective work and design under the Design and Building Practitioners Act 2020 (DBP Act) and to resist payment claims under the Building and Construction Industry Security of Payment Act NSW 1999 (SOP Act).

Firstly, in The Owners Strata Plan No 84674 v Pafburn Pty Ltd the Court of Appeal held that proportionate liability under the Civil Liability Act 2002 (CL Act) doesn't apply to the duty of care under section 37 of the DBP Act.

Secondly, in Acciona Infrastructure Projects Australia Pty Ltd v EnerMech Pty Ltd the Supreme Court confirmed that by calling on security held under a construction contract a council can effectively neutralise an adverse SOP Act determination.

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