Construction – Statutory Duty of Care and Breach of Statutory Warranties

A NSW homeowner purchased a home and land package expecting a fully completed property with standard warranty protections. Unfortunately, the process turned complex due to defective construction, insolvency of builders, and lack of insurance coverage.

Criminal Law : Construction Law
Time Frame : Ongoing
Lawyer : Damin Murdock

Challenge

Our client discovered significant construction defects upon taking possession of the property. The initial builder engaged by the developer went into liquidation during construction. A second builder completed the works, and a certifier issued an occupancy certificate. However, when the homeowner made a home warranty insurance claim, it was denied on the grounds that the policy did not cover the second builder, and that builder had no insurance in place.

The developer and its director

The second builder and its director

The building certifier

Duties under the HB Act and DBP Act

Our Process

Leo Lawyers undertook a detailed legal and factual review to identify all potential liabilities and avenues for recovery.

Reviewing the Contracts

We examined the contractual relationships between the developer, both builders, and certifiers to determine responsibility for the defective works.

Assessing Statutory Duties

We analysed obligations under the DBP Act and HB Act, focusing on the statutory duty of care owed by all parties who carried out or supervised construction work.

Filing Legal Proceedings

We commenced legal action against the developer’s director, the second builder and its director, as well as the building certifier, for approving construction works without ensuring home warranty insurance was in place.

Setting a Legal Precedent

Our claim against the certifier, alleging a breach of statutory duty under the DBP Act, represents a novel approach, extending accountability beyond builders to certifiers and developers.

Result

The case is ongoing and has the potential to be precedent-setting for the construction industry in New South Wales. A favourable judgment could expand homeowners’ rights to pursue compensation from directors, developers, and certifiers involved in uninsured or defective building work, reinforcing industry accountability and consumer protection.

Case Study :

Real Estate

Construction – Statutory Duty of Care and Breach of Statutory Warranties