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ARTICLE · 06 APRIL 2019

Design defects – builders and developers may be liable

This case decided that if you build or develop a building, you may also be responsible for any defects in its design.

AustraliaReal Estate and Construction
Kate Cormican (Formerly With Bartier Perry)
Kate Cormican (Formerly With Bartier Perry)
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As a builder or developer, it can be tempting to assume that responsibility for the design of any building you're constructing or developing rests solely with its designer.

But that assumption could come back to haunt you.

A recent Court of Appeal decision sends a clear message that if you build it or develop it, you may also be responsible for any defects in the design of the building.

In 2000 Meridian, a company controlled by a Mrs King and her son, engaged Beach Construction to convert a warehouse into a mixed residential and commercial strata scheme.

Unfortunately, the plans and specifications drawn up by the Kings' architect contained defects in design, including the absence of handrails and thermal detectors. They also failed to conform with the requirements of the Building Code of Australia, the Environmental Planning and Assessment Act 1979 (NSW) and the conditions of the relevant development consent.

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