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ARTICLE · 07 APRIL 2011

QBSA’s power to issue directions to rectify against construction managers is confirmed

Norton Rose Fulbright Australia
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The Queensland Court of Appeal in McNab Constructions Australia Pty Ltd v Queensland Building Services Authority1 has confirmed that the Queensland Building Services Authority can require construction managers to rectify defective or incomplete building work, even in situations where the construction manager only provided supervisory services and was not involved in the design or execution of the work.

AustraliaReal Estate and Construction
Peter Borg
Peter Borg
Aleisa Crepin
Aleisa Crepin
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Summary

The Queensland Court of Appeal in McNab Constructions Australia Pty Ltd v Queensland Building Services Authority1 has confirmed that the Queensland Building Services Authority can require construction managers to rectify defective or incomplete building work, even in situations where the construction manager only provided supervisory services and was not involved in the design or execution of the work.

Failure to comply with a direction to rectify exposes construction managers to fines of up to $25,000 per direction, accruing licence demerit points and being liable for the rectification costs. Construction managers should therefore make sure that appropriate provisions are included in their contracts with owners/principals to deal with this exposure.

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