By David Opperman and Geoff Hansen
Overview
A court will usually award damages for defective building works based on the cost of rectifying the defects complained of. However, the question of damages for building defects can be more complicated where:
- the owner does not intend to rectify the defects, or
- the owner sells the building without carrying out the works.
The New South Wales Supreme Court recently considered whether an owner of a building was entitled to recover the costs of rectifying defective work in a situation where the building had been sold, the rectification work had not been performed and the defects had little or no effect on the value of the building.
Facts
SAS Trustee Corporation (SAS) entered into contracts with a number of companies for the design and construction of a glazed pavilion, which was to connect two high rise towers. Disputes arose regarding alleged defects in the waterproofing, glazing, paving and pergola steelworks.
