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ARTICLE · 30 JULY 2012

What constitutes structural works in a lease?

Colin Biggers & Paisley
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The landlord was held liable for required structural works and to reimburse the tenant for costs and loss of profit.

AustraliaReal Estate and Construction
Chris Rumore
Chris Rumore

In brief - Landlord liable to carry out structural works and compensate tenant

In a dispute related to structural works required on a hotel by the council, the landlord was held liable to carry out the works and to reimburse the tenant for the works that it had paid for and also to compensate the tenant for loss of profit whilst the accommodation section of the hotel was closed.

Holus Bolus v The Wicko

In Holus Bolus Pty Limited v The Wicko Pty Limited, the matter in dispute between the parties was a notice with regard to carrying out works related to fire safety issues in a hotel in Quirindi.

The dispute arose between the lessor and the lessee as to who was responsible for this and council ordered that the residential portion of the premises be closed until the works were undertaken.

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