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ARTICLE · 27 SEPTEMBER 2017

Limelight Issue No. 74: PCAs and building defects in NSW

Gilchrist Connell
Explore more from Gilchrist Connell

This case narrows the scope of claims that can be brought against PCAs for economic loss caused by building defects.

AustraliaReal Estate and Construction
Paul Kozub
Paul Kozub
Charu Stevenson (Formerly With Gilchrist Connell)
Charu Stevenson (Formerly With Gilchrist Connell)
Author LinkedIn connections

Introduction

On 7 September 2017, the NSW Court of Appeal unanimously held in Ku-ring-gai Council v Chan [2017] NSWCA 226 that a principal certifying authority (PCA) did not owe a duty of care to avoid pure economic loss to prospective purchasers of a property when issuing an occupying certificate.

This decision confirms that the role of PCAs in issuing occupation certificates does not extend to certifying that the building work does not, or is not likely to, contain latent defects or that the works comply with the relevant plans or the conditions of the development consent.

Background

Mr Acres owned a residential property in Wahroonga (Property). In 2008, he undertook to construct an extension to the Property as an owner-builder (Construction). For the Construction, he retained:

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