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ARTICLE · 05 AUGUST 2026

When A Build Goes Wrong - Termination, Defects & Delays

Bartier Perry Solicitors
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The decision in Kensington Homes (NSW) Pty Ltd v McMullen NSWCATCD 138 provides vital insights into the interpretation and application of the Home Building Act 1989 (NSW) (HB Act), contract repudiation and termination, defective works, and remedies and exposure related to delays on construction projects.

AustraliaReal Estate and Construction
Anish Wilson
Anish Wilson
Isaac Choice
Isaac Choice
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The decision in Kensington Homes (NSW) Pty Ltd v McMullen NSWCATCD 138 provides vital insights into the interpretation and application of the Home Building Act 1989 (NSW) (HB Act), contract repudiation and termination, defective works, and remedies and exposure related to delays on construction projects.

The contract and key dates

On 29 June 2020, Kensington Homes (NSW) Pty Ltd (Builder) entered into a residential building contract (Contract) with Mr McMullen (Owner) for the construction of a new home in Sydney.

The contract had a contract price of circa $610,000 and a 210-day construction period (ending on 5 November 2021).

On 17 December 2020 work began.

On 31 August 2021, the Owners' consultant identified construction issues, including a slab 1.42m higher than specified, visible concrete piers and a damaged termite barrier.

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