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ARTICLE · 16 FEBRUARY 2023

Shifting the dial on building defects liability - a greater risk for company directors and developers under recent legislative reform

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A new statutory duty of care, by a 'person' who carries out construction work, may include company directors and developers.

AustraliaReal Estate and Construction
Helen Kowal
Helen Kowal
Nicholas Hufton
Nicholas Hufton
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Under the Home Building Act 1989, claimants in defective building cases against corporate builders and/or corporate developers may hit a roadblock in the case of ultimate insolvency of those parties even if the claims are successful and rectification or damages orders are made in respect of the defects.

Has this now changed? Are the controlling minds of those companies, traditionally not touched by such litigation, now at risk?

We are all aware that the Building Commissioner of New South Wales is utilising his ever increasing powers under continuing construction reform in NSW to stamp out 'risky' builders and developers with the intent of tagging those parties with a label to prevent them ever building again or at least be in the difficult position of being unable to obtain insurance for the performance of building works.

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Michael Byrnes, Partner
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