PI policy carve outs for cladding – new MO effective 15 February 2020

Effective from 15 February 2020, the Victorian State Government has extended the permitted exclusions in ‘claims made’ professional indemnity policies relating to external wall cladding products to apply to all relevant industry professionals.   Section 135 of the Building Act 1993 (Vic) allows the Minister for Planning to publish Ministerial Orders in the Government Gazette requiring […]

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Non-compliant cladding extends to ‘Biowood’ composite cladding used as an external attachment

The Owners Strata Plan No 92888 v Taylor Constructions Group Pty Ltd and Frasers Putney Pty Ltd [2019] NSWCAT [15 November 2019, Senior Member Boyce] (Taylor Constructions) The first decision in NSW involving combustible cladding has been handed down by the NSW Civil and Administrative Tribunal. Whilst most of the attention in recent times has […]

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Victorian Government issues funding guidelines for the combustible cladding ‘rescue package’

On 19 December 2019, Cladding Safety Victoria (CSV) issued guidelines on the Victorian Government’s cladding rectification funding program (Program) for the rectification of combustible cladding of residential apartment buildings (Guidelines). Importantly, the Guidelines set out which owners are eligible for the funding, namely that you must be an owners corporation responsible for a residential building […]

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The Victorian State Government’s Building Amendment (Cladding Rectification) Bill 2019 passes Parliament.

On 12 November 2019 the Building Amendment (Cladding Rectification) Bill 2019 passed State Parliament and the Building Amendment (Cladding Rectification) Act 2019 (new Act) has now received Royal Assent. The new Act enacts the State Government’s consumer focused ‘rescue package’ in relation to the funding of ‘cladding rectification work’[1] associated with ‘non-compliant or non-conforming external […]

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Termination of construction contracts – the issue of good faith

Bundanoon Sandstone Pty Ltd v Cenric Group Pty Ltd [2019] NSWCA 87 (30 April 2019) (Meagher, Gleeson and McCallum JJA).   Issue and Outcome  The NSW Court of Appeal held that a show cause notice issued by a principal under a construction contract was not issued in good faith (because it was redolent of bad […]

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The dark arts of delay analysis turn ultra violet – or ‘don’t ignore the facts’

White Constructions Pty Ltd v PBS Holdings Pty Ltd [2019] NSWSC 1166 (6 September 2019) (Hammerschlag J)   Delay and, separately, disruption claims are common sources of dispute in construction projects.  Compounding what are usually factually complicated scenarios are issues of terminology and experts’ competing views about the correct analysis and approach to assessing the […]

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Combustible cladding – A flammable issue

A recent decision of the Victorian Civil and Administrative Tribunal (VCAT) has provided some useful guidance in relation to the responsibility of builders and consultants to owners in respect of the installation of non-compliant aluminium composite panels on buildings in Victoria. On 28 February 2019, his Honour Judge Woodward handed down his decision apportioning liability […]

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