Who’s	  Responsible	  for	  These	  Defects	  and	        How	  Do	  I	  Get	  Them	  to	  Pay?	        Webinar,	  1	  Sep...
Seven	  Things	  You	  Need	  to	  Know	  About	               Building	  Defects	        1	                              ...
Sources	  of	  Defects	  Workmanship	                                       Design	  (Engineer	  /	  (Builder	  /	        ...
Causes	  of	  Ac]on	  for	  OCs	  1.  Negligence	                •          Possible	  defendants	                        ...
Relevant	  Limita]on	  Periods	                                                                                       6	  ...
Jurisdic]on	   1.  Consumer	  Trader	  and	  Tenancy	  Tribunal	  (Home	       Building	  Division)	           –  Applica]...
Case	  Study	  1	                              Background	                                                                ...
Case	  Study	  2	                              Background	                                                                ...
Home	  Warranty	  Insurance	  HWI	                                         Mark	  1	                    1	  May	  1997	  –...
Managing	  Legal	  Risk	                    Master	  Builders	                                                            ...
Access	  Issues	                       •  Access	  to	  Neighbouring	  Land	  Act	  2000	                       •  Conveya...
Building	  and	  Construc]on	  Industry	  Security	  of	  Payment	  Act	  1999	  (NSW)	                                   ...
Join	  our	  next	  webinar	  Join	  us	  for	  our	  next	  webinar	  at	  4.00pm	  on	  6	  October	  2011	  ‘How	  To	 ...
About	  The	  Presenter	                                         Chris	   worked	   for	   many	   years	   in	   leading	...
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Whos responsible for these defects and how do i get them to pay 1 september 2011

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Whos responsible for these defects and how do i get them to pay 1 september 2011

  1. 1. Who’s  Responsible  for  These  Defects  and   How  Do  I  Get  Them  to  Pay?   Webinar,  1  September  2011  ©  Copyright  2011  Teys  Lawyers                  www.teyslawyers.com.au  
  2. 2. Seven  Things  You  Need  to  Know  About   Building  Defects   1   2   3   • Do  you  have  home   • When  did  the  defect   • Defects  liability   warranty  insurance?   become  apparent?   periods   4   5   6   • O  H  S  issues   • Lot  v  common   • Maintenance   property   7   • When  should  you   get  an  expert?  ©  Copyright  2011  Teys  Lawyers                  www.teyslawyers.com.au  
  3. 3. Sources  of  Defects  Workmanship   Design  (Engineer  /  (Builder  /   Architect)  Subcontractor)   •  Has  designer  exercised  •  Either  not  building   reasonable  skill,  care   Combina]on  of   according  to  the  design   and  diligence   Workmanship  &   or  good  building   Design   prac]ce  (BCA,  Australian   Standards  or  other   industry  standards)     ©  Copyright  2011  Teys  Lawyers                  www.teyslawyers.com.au  
  4. 4. Causes  of  Ac]on  for  OCs  1.  Negligence   •  Possible  defendants   –  Builder  /  subcontractor   –  Designer  (architect,  engineer  etc)   –  Developer  (in  limited   circumstances)   –  Principal  cer]fying  authority  (PCA)   –  Strata  manager   –  Building  materials  supplier  2.  Statutory  warran]es   •  Possible  defendants   –  Builder   –  Developer  3.  Other   ©  Copyright  2011  Teys  Lawyers                  www.teyslawyers.com.au  
  5. 5. Relevant  Limita]on  Periods   6  years  from  the   Negligence   date  the  cause  of   ac]on  accrues  (s.14   Limita]on  Act)   Statutory   7  years  a_er  the   comple]on  of  the   Warran]es   work  (s.18E(1)  HB   Act)   10  years  a_er  date   Building   on  which  the  final   occupa]on   Ac]on   cer]ficate  is  issued   (s.109ZK(1)  EPA  Act)  ©  Copyright  2011  Teys  Lawyers                  www.teyslawyers.com.au  
  6. 6. Jurisdic]on   1.  Consumer  Trader  and  Tenancy  Tribunal  (Home   Building  Division)   –  Applica]ons  up  to  $500k   –  Applica]ons  about  insurance  claims  must  be  lodged   within  10  years  of  comple]on   –  Must  fall  within  defini]on  of  ‘building  claim’  in  s.48A  of   Home  Building  Act   –  Mandatory  jurisdic]on  for  building  claims   2.  Supreme,  District  and  Local  Courts  ©  Copyright  2011  Teys  Lawyers                  www.teyslawyers.com.au  
  7. 7. Case  Study  1   Background   Outcome   OC  approached  TEYS  Lawyers  for  OC  of  over  200  units   leier  of  demand   TEYS  Lawyers  advised  need  to   Significant  water  penetra]on  issues   determine  defect  (not  describe  it)   Consultant  engaged  and  invited   OC  independently  retained  expert   builder  to  observe  tes]ng.   who  described  defect  but  not  cause   Rec]fica]on  work  iden]fied  and   es]mated  at  >$5m   Builder  rejected  content  of  report   Builder  conceded  responsibility  and   ci]ng  ‘wind-­‐driven’  rain  as  cause   agreed  to  rec]fy   Outcome  achieved  in  6  months  –  less   OC  wasted  a  year  in  the  process   than  $10k  in  legal  fees  billed  to  date   ©  Copyright  2011  Teys  Lawyers                  www.teyslawyers.com.au  
  8. 8. Case  Study  2   Background   Outcome  OC  of  over  100  units   OC  approached  TEYS  Lawyers   Consultant  engaged  and  invited   Significant  defects  affec]ng  many   builder  to  observe  tes]ng.   units  (cost  es]mate  circa  $10m)   Rec]fica]on  categorised  as  type  and   cause   Legal  proceedings  commenced  by   Prototypes  for  rec]fica]on  devised   another  law  firm  –  claimed  against   and  agreed  with  builder   HOW  policy   TEYS  Lawyers  discon]nued   Builder  aiempted  rec]fica]on,   unnecessary  proceedings.    Deeds  of   was  unable  and  engaged  lawyer  to   seilement  agreed  with  builder  for   defend  claim   rec]fica]on  at  his  cost   On-­‐going  legal  spend  on  li]ga]on   OC  spent  a  year  in  the  process   reduced  to  $nil   ©  Copyright  2011  Teys  Lawyers                  www.teyslawyers.com.au  
  9. 9. Home  Warranty  Insurance  HWI   Mark  1   1  May  1997  –  30  June  2002  HWI   Mark  2   1  July  2002  –  30  December  2003  HWI   Mark  3   31  December  2003  –  Present   ©  Copyright  2011  Teys  Lawyers                  www.teyslawyers.com.au  
  10. 10. Managing  Legal  Risk   Master  Builders   Royal  Australian   Assoc  GCC  3  Circa   Ins]tute  of  Architects   1980   CIC  1  1997   Master  Builders   Australian   Australian  Standards                   Australian   Property   Assoc  Deacon  2   Australian  Standards   Standards  AS   AS  4300  –  1995   Standards                         Council  PC1   1998/2005   AS4905  2002   4902  [D&C]   [D&C]   AS  2124  -­‐  1981   1998   Very     Very    Contractor  /  Builder   Owner  /  Principal     Friendly    Friendly   Australian   Australian   Australian   ABIC  MW-­‐1   Standards  AS400   Standards     Standards                   2003   1997   AS  2124  -­‐  1992   AS  2124  -­‐  1986   ©  Copyright  2011  Teys  Lawyers                  www.teyslawyers.com.au  
  11. 11. Access  Issues   •  Access  to  Neighbouring  Land  Act  2000   •  Conveyancing  Act  1919  (s.88K  and  s.177)   •  Deeds  (indemni]es,  security,  insurance,  OHS,  etc)  ©  Copyright  2011  Teys  Lawyers                  www.teyslawyers.com.au  
  12. 12. Building  and  Construc]on  Industry  Security  of  Payment  Act  1999  (NSW)   Issue a Payment Claim Full  payment  is  made  prior  to  expiry  of  period  in  which  a  Payment  Schedule  can  be  issued   whenever a contractual entitlement to make a progress claim arises, otherwise on the last day of the month PAYMENT                  PAYMENT                PAYMENT                PAYMENT            PAYMENT            PAYMENT             2  days  no]ce  of   Failure  to  Issue  a  Payment  Schedule   Payment  Schedule  Issued   Respondent’s  steps   Claimant’s  steps   Adjudicator’s  steps   inten]on  to  suspend   within  10  days  of  Payment  Claim     indica]ng  Scheduled  Amount  which  is  approved  works  before  suspending   (or  less  if  contractually  required)   Or   for  payment  and  providing  reasons  as  to  why   References  to  days  in  this  flowchart  are  references  to  business  days.     Scheduled  Amount  may  be  less  than  the  Claimed   This  flowchart  demonstrates  the  payment  mechanism  set  down  by  the  Act   Amount  must  be  issued  within  10  days  of   and  should  not  be  construed  as  legal  advice.   Payment  Claim  (or  less  if  contractually  required)   NoMce  of  IntenMon  to  Apply   Recover  as  a  debt   For  AdjudicaMon   due  in  Court   Or   giving  further  5  days  (2nd  chance)  to  issue     a  Payment  Schedule  to  be  given  within    20  days  of  expiry  of  due  date  for  payment   Scheduled  amount  must  be  paid  by  the  contractual  due  date  for  payment  otherwise  ,   within  10  business  days  of  the  Payment  Claim   Schedule  Amount   Failure  to  Issue     Payment  Schedule  Issued   Failure  to  Pay  Scheduled  Amount   2  days  no]ce  of   within  5  days  of  No]ce   If  less  than   For  approved   inten]on  to  suspend   a  Payment  Schedule   Or   by  the  due  date  for  payment  under     Claimed  Amount   part  of  Claimed   within  5  days  of  No]ce   the  contract   works  before  suspending   Amount  AdjudicaMon  ApplicaMon   AdjudicaMon  ApplicaMon   made  within  10  days  of   made  to  determine  en]tlement  to   AdjudicaMon  ApplicaMon   Recover  as  a  debt  expiry  of  5  day  2nd  chance   balance,  within  10  days  of  receiving   made  within  20  days  of  expiry   due  in  Court   Payment  Schedule   of  due  date  for  payment   Or   Adjudicator  Accepts  Appointment  within  4  Days  of  AdjudicaMon  ApplicaMon  Being  Made   (or  failing  acceptance,  a  new  Adjudica]on  Applica]on  can  be  made  within  5  days  of  expiry  of  the  4  day  period  for  accep]ng  first  applica]on)   Adjudica]on  Response   AdjudicaMon  Response   not  permiied   within  5  days  a_er  receiving  Adjudica]on  Applica]on,  or  2  days  a_er     receiving  no]ce  of  Adjudicator’s  acceptance,  whichever  ]me  expires  later   Payment  within  5  days  of  determina]on  unless   later  ]me  determined  by  Adjudicator   Adjudicator  Determines  Adjudicated  Amount,  due  date  for  payment  and  applicable  rate  of    interest   within  10  days  of  accep]ng  appointment  to  act  as  Adjudicator,  unless  the  par]es  agree  to  extend  the  ]me  for  determina]on   Failure  to  pay  Adjudicated  Amount                     Debt  recovery  process  (including  process  set     File  Adjudica]on  Cer]ficate  as   out  in  the  Contractors  Debts  Act)   Request  Adjudica]on  Cer]ficate  and  give   2  days  no]ce  of  inten]on  to  suspend  works   judgment  for  unpaid  amount  in  Court   ©  Copyright  2011  Teys  Lawyers                  www.teyslawyers.com.au  
  13. 13. Join  our  next  webinar  Join  us  for  our  next  webinar  at  4.00pm  on  6  October  2011  ‘How  To  Prevent  Building  Defect  Li7ga7on  Tearing  Your  OC  Apart’  Reserve  your  seat  now  at:  hips://www3.gotomee]ng.com/register/772441334  ©  Copyright  2011  Teys  Lawyers                  www.teyslawyers.com.au  
  14. 14. About  The  Presenter   Chris   worked   for   many   years   in   leading   commercial   construc]on   law   prac]ces   ac]ng   for   government,   developers   and   contractors   in   disputes   in   the   building,   transport   infrastructure   and   resources   sectors.   He   has   been   involved   in   all   forms   of   dispute   resolu]on   including  li]ga]on,  arbitra]on  and  alterna]ve  dispute  resolu]on  in   a   range   of   jurisdic]ons   in   Australia.   In   the   last   few   years,   he   has   brought  his  specialist  construc]on  industry  knowledge  to  the  strata   sector   and   now   only   acts   for   owners   corpora]ons   in   a   range   of   disputes  in  various  jurisdic]ons.    TEYS   Lawyers   prac]ce   na]onally   in   strata   ]tle   law   represen]ng   owners   corpora]ons,  bodies   corporate   and   apartment   owners.     The   firm’s   prac]ce   groups   include   building  defects,  management  rights,  strata  community  disputes,  by-­‐laws  and  rules  and  levy  and  fee  collec]on.  Subscribe   for   their   free   e-­‐newsleier   StrataSpace   and   find   out   more   about   them   at  www.teyslawyers.com.au   ©  Copyright  2011  Teys  Lawyers                  www.teyslawyers.com.au  
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