What's News

EU-style protection for carbon tax: miners
6 April 2011
The mining sector wants Australia to emulate the approach of the European Union (EU) and give free emissions permits to trade exposed sectors. More...

Fallout from rate rises has housing recovery in trouble
6 April 2011
Loans for construction of dwellings and purchase of new dwellings, combined, declined once again in February as the residual impact of higher interest rates works against a recovery in residential building. More...

ISO standards to enable fairer construction procurement
31 March 2011
The ISO 10845 series of standards for construction procurement is aimed at helping organisations establish a procurement system that is fair, equitable, transparent, competitive and cost-effective. The standards have been designed to offer the international construction industry practical tools to ensure fair competition, reduce the possibility of abuse and improve predictability in procurement outcomes. More...

Mining and energy sectors unearth a building boom
4 April 2011
Australia is on the edge of a record construction boom fuelled by the mining and energy sectors, with commitments on new private and public sector projects rising to at least $100 billion a year. A new report estimates civil construction will surge 25 per cent by 2014, boosting mines, ports, railways, and transport projects. More...

Master Builders call for safety regulations to be made workable
7 April 2011
Master Builders Australia has recommended Safe Work Australia change its Model Regulations and Codes to make them workable for the building and construction industry. In addition to these substantive issues, Master Builders’ submission also recommends a large number of technical changes to the Model Regulations and codes of practice. More...

Construction industry slumps even further
7 April 2011
Steeper falls in activity, new orders and employment saw the national construction industry move further into negative territory in March. The latest Australian Industry Group Australian Performance of Construction Index (Australian PCI) in conjunction with the Housing Industry Association, dropped 5.2 points to 39.4 to remain below the 50 point level separating expansion from contraction for the tenth consecutive month. More...

BIS Shrapnel forcasts 20pc construction surge
4 March 2011
BIS Shrapnel forcasts activity would ramp up by 20 per cent in 2011-12 and 2012-13, with a forecast 5 per cent for 2010-11, with a surge in civil construction activity over the next three years due to mining and LNG-related work, as well as flood reconstruction. More...

New legislative reform set to affect building and construction industry
13 April 2011
The Personal Property Securities Register is a single national database of all personal property security interests other than land, buildings and fixtures and will replace over 25 state and federal-based systems which have varying rules and requirements. Construction and building companies who have lease portfolios, fleet managers and fleet rentals will need to adopt best practice credit and risk management in the wake of the upcoming legislative reform. More...

Victoria

Australand to develop new residential neighbourhood in Victoria
5 April 2011
The Victorian Government’s director of housing has signed an agreement with Australand to develop Valley Park, a new integrated public and social housing residential neighbourhood on an 18 hectare site in Westmeadows, Victoria. More...

Probuild begins massive addition to Melbourne shopping centre
31 March 2011
Probuild has begun construction on the $300 million redevelopment of Highpoint Shopping Centre in Melbourne’s west this month. ESD initiatives will see the builder using a high proportion of recycled materials, energy efficient lighting and natural ventilation. More...

Community grants announced for flood affected waterways
7 April 2011
Minister for Regional Cities Denis Napthine has announced the Baillieu Government will provide grants to help local communities repair waterways infrastructure damaged by the recent floods throughout Victoria. Grants totalling $200,000 will be provided to waterway managers in flood-affected areas to aid in the restoration of navigation aids and safety signage on rivers and lakes. More...

National code aligns building and plumbing regulations
7 April 2011
A new Bill in Parliament has been passed, amending the Building Act 1993 to include the NCC, which will be rolled out nationally on 1 May 2011. Both building and plumbing codes will be consolidated into a national code. More...

Building permit activity in February 2011 a record $2.2 billion
6 April 2011
The value of building permit activity in Victoria in February 2011 was a record $2.2 billion, an increase of 10 per compared with the same month in 2010. The Building Commissioner, Tony Arnel, said that in February 2011 there was a surge in residential (including high rise) building permit activity of 71 per cent to $232 million, compared with February 2010. More...

Industry welcomes go-ahead for the construction of Victoria’s Regional Rail Link
6 April 2011
The Australian Industry Group’s Victorian Director Tim Piper has welcomed the Victorian government’s decision to proceed with the Regional Rail Link saying it is a vital long-term investment for the state. More...

Union restrictions on contractors said to be unlawful
7 April 2011
The Australian Industry Group has notified Fair Work Australia (FWA) of its opposition to the approval of six further enterprise agreements which replicate the terms of an Electrical Trades Union (ETU) pattern agreement for the electrical contracting industry in Victoria. More...

ABCC successful in Eastlink action
7 April 2011
The Federal Magistrates Court at Melbourne has imposed penalties totalling $37,500 on the CFMEU, and its officials Michael Powell and Alex Tadic. The court found the union and two officials engaged in unlawful industrial action on the Eastlink project in Melbourne. More...

Poor Victorian figures drive further drop in building approvals
31 March 2011
Following the significant 11.6 per cent fall in approvals in January, building approvals again fell in February 2011 driven by a major fall in the “other dwellings” component, said the Housing Industry Association, the voice of Australia’s residential building industry.
More...

Building designers take up 10 Star Energy Challenge
31 March 2011
The Building Designers Association of Victoria (BDAV) has challenged its members to set new benchmarks in sustainable housing design with yesterday’s announcement of the 10 Star Energy Challenge. The BDAV is inviting its 1600+ members to submit groundbreaking designs for energy-efficient houses with a 10 star energy rating. More...

Regional Rail Link gets green light
5 April 2011
The Regional Rail Link Project will go ahead according to the Minister for Public Transport Terry Mulder. Regional Rail Link is jointly funded by the Australian and Victorian governments with the Commonwealth contributing $3.2 billion, of which $500 million has been deferred. Further announcements about the procurement process for Regional Rail Link will be made soon. More...

Queensland

Premier’s Disaster Relief Fund offers up to $80,000: third round
7 April 2011
The Premier said applications for the next funding round, which will open next Monday, April 11, would target those Queenslanders whose homes were not destroyed but sustained significant damage. More...

North Stradbroke sand mining closures breaching legislative principles
7 April 2011
The decision by the Queensland government to phase out sand mining on North Stradbroke Island has been met with criticism from the Queensland Law Society, who say it is breaching fundamental legislative principles. But the Law Society has raised a red flag on the decision, saying the draft bill states that sand mining companies will not receive any compensation for the phasing out of the operations. More...

Two state hospitals on the books for QLD region
5 April 2011
Premier Anna Bligh has announced the government will be locked in to developing two hospitals. One contract has been locked in to develop the new private hospital at Kawana, with Ramsay Health Care, which is one of the largest private hospital operators in Australia. The Premier has also announced that the State Government will be calling for tenders for consortia to build a two billion dollar public hospital. More...

Queensland farmers urged to seek legal advice over mining deals
31 March 2011
The Queensland Government says landholders should seek third party legal advice before entering into any mining exploration agreements with coal seam gas companies. At least 12 companies are exploring in the state’s central-west as the sector continues its rapid expansion. More...

BSA building inspection teams target shonky builders
31 March 2011
State Government building inspectors, with Building Services Authority (BSA) audit teams are inspecting building sites on Brisbane’s flood-affected southside for shonky reconstruction work. The BSA teams were cracking down on unlicensed contractors to protect home owners as they rebuild their damaged properties. More...

Construction company fined $42,000 for safety breach
29 March 2011
A Mackay construction company has been fined $42,000 over a workplace accident and pleaded guilty to failing to ensure a safe workplace More...

New South Wales

Penalties obtained in first ABCC sham contracting case
5 April 2011
The Federal Magistrates Court in Sydney has ruled that an ACT construction company and two of its directors engaged in sham contracting. This is the first case in which the ABCC has enforced the sham contracting provisions of the Workplace Relations Act 1996, or its successor, the Fair Work Act 2009. More...

NSW planning mandate
5 April 2011
The Urban Taskforce’s chief executive officer, Aaron Gadiel, said the Coalition parties had set out an agenda to repeal Part 3A, reduce red tape, dramatically boost the supply of new homes, invest in urban infrastructure and reform the planning system. More...

Publications/ Conferences

Management efficiency performance of construction businesses: Australian data
Authors: Balatbat, Maria C.A.; Lin, Cho-Yi; Carmichael, David G.
Engineering, Construction and Architectural Management, 2011, Vol 18, No 2, pp. 140-158(19)

Diagnosing the strategic health of an organization from SWOT analysis results: case study of the Australasian cost management profession
Authors: Mbachu, Jasper; Frei, Marcel
Construction Management and Economics, 2011, Vol 29, No 3, March , pp. 287-303(17)

VIC: CPD Awards 2010 announced: Professional Development important to Victorian Builders
31 March 2011
The Building Commission recognised five Victorians working in the building industry for their commitment to Continuing Professional Development (CPD). Building Commissioner Tony Arnel said in a changing environment, registered building practitioners need to keep-up-to-date with new skills, technologies and regulations.

NSW: Certifying development involving a voluntary planning agreement
April 2011
New obligations mean that certifying authorities cannot issue construction certificates, occupation certificates or subdivision certificates unless they are satisfied that the conditions stipulated under a voluntary planning agreement as required to be met before these certificates are issued are complied with. More...

QLD: Discussion paper on National Broadband Network feedback
31 March 2011
Queenslanders can have their say on the National Broadband Network (NBN), with the release of a discussion paper: Queensland’s approach to the National Broadband Network. Consultation closes 21 April 2011. More...

Legislation

Queensland

Acts
Electrical Safety and Other Legislation Amendment Act 2011

Regulations
Architects Amendment Regulation (No. 1) 2011

Victoria

Bills
Building Amendment Bill 2011

Cases

Pool Data Systems Pty Limited v Bayliss & Anor [2011] NSWSC 224
Administrative law - appeal from Local Court - certiorari - whether Magistrate made a finding not before the Local Court - error of law - whether plaintiff entitled to fees for allegedly defective and “wildly inaccurate” building report - whether defendant induced to engage plaintiff by false misrepresentation qualifications, when not pleaded, an error of law - undesirable for matter to be referred back to the Local Court - no formal agreement for works - quantum meruit - reasonable costs and expenses. Fair Trading Act 1987; Home Building Act 1989; Home Building Regulation 2004; Local Court Act 2007. Supreme Court Act 1970; Trade Practices Act 1974 (Cth). More...

Boral Resources (NSW) Pty Ltd v Urban 8 Constructions Pty Ltd [2011] NSWSC 217
Corporations - winding up - winding up order made in the defendant’s absence - where plaintiff’s representative had told officer of defendant that the matter was listed at 9.15am when the listing was at 9.00am - where originating process stated venue at Supreme Court Queens Square but matter in fact heard at a courtroom in a building in Macquarie Street - standing of applicant for order setting aside winding up order doubtful - but court should of its own motion set the order aside to preserve the integrity of its proceedings. More...

The Owners, SP 75903 v Dix & Anor [2011] NSWSC 245
Statutory construction - construction of the Home Building Regulation 1997 made under the Home Building Act 1989 - clause 57BC(5) - basis for determining exclusion from exemption for multi-storey building - insurance not required for a building having a “rise in storeys of more than 3” - whether Lower Ground Floor was a level that “includes accommodation only intended for vehicles” and so excluded from the calculation of the number of levels. More...

CGU Insurance Ltd v Bazem Pty Ltd [2011] NSWCA 81
Procedure - civil - joinder of parties - Uniform Civil Procedure Rules r 6.19 - whether primary judge had power to grant leave to join insurer as defendant. Architects Act 2003; Bankruptcy Act 1966 (Cth); Corporations Act 2001 (Cth); Insurance Contracts Act 1984 (Cth); Law Reform (Miscellaneous Provisions) Act 1946 - Trade Practices Act 1974 (Cth); Uniform Civil Procedure Rules. Client sued the Architect for damages, alleging that the Architect had breached a contract with the Client for the supply of architectural services and had been negligent in the provision of those services. Under the Policy, the Insurer is obliged to indemnify the Architect against certain types of civil liability claims made within the policy period. More...

Downer EDI Works Pty Ltd v Parsons Brinckerhoff Australia Pty Ltd [2011] NSWCA 78
Building and construction - payment claim under Building and Construction Industry Security of Payment Act 1999 sent by facsimile - whether served in accordance with s 31(1)(c) by sending addressed to the person’s ordinary place of business - multiple ordinary places of business - whether necessary that ordinary place of business be that with closest connection with relevant works - not necessary - Melbourne office was ordinary place of business. Building and Construction Industry Security of Payment Act 1999. More...

May v Christodoulou [2011] NSWCA 75
Costs - director represents defendant company at trial - plaintiff succeeds - non-party costs order made against director - whether primary Judge erred in making the order - criteria for making a costs order against a director representing a defendant company. Procedure - Home Building Act 1989 (NSW), s 48L - defendant applies for transfer of the proceedings - application made on third day of hearing - application refused - whether refusal deprived Court of jurisdiction - whether right to apply for a transfer had been waived - Civil Procedure Act 2005 (NSW); Home Building Act 1989 (NSW); Suitors Fund Act 1951 (NSW); Home Building Regulation 2004 (NSW); Uniform Civil Procedure Rules 2005 (NSW). More...

Lange v Queensland Building Services Authority [2011] QCA 58
Professions and trades – Builders – Statutory insurance scheme – where appellant’s company contracted to build three townhouses for owners – where townhouses comprised one detached dwelling and one duplex – where owners covered by insurance policy pursuant to the Queensland Building Industry Services Authority Act 1991 (Qld) – where respondent’s liability limited under the policy – where work was not completed – where owners terminated contract – where owners successfully claimed $200,000 from respondent on policy – where respondent sought indemnity from appellant pursuant to Queensland Building Industry Services Authority Act 1991 (Qld) s 111C – whether exclusion clause in policy applicable. More...

Thiess Pty Ltd v MCC Mining (Western Australia) Pty Ltd [2011] WASC 80
Administrative law - Whether a determination by an adjudicator under the Construction Contracts Act 2004 (WA) is subject to the Supreme Court’s supervisory jurisdiction - Grounds on which certiorari might be granted - Construction of a privative clause. Building and construction - Security of payment - Application for leave to enforce determination made under Construction Contracts Act 2004 (WA) as a judgment - Whether adjudication application made within time or contained ‘recycled’ claims - Whether a respondent who is aggrieved by a decision by an adjudicator to refuse to dismiss an adjudication application can seek a review of the decision in the State Administrative Tribunal. Construction Contracts Act 2004 (WA); State Administrative Tribunal Act 2004 (WA). More...

VK Property Group Pty Ltd and Ors v Conias Properties Pty Ltd and Anor [2011] QSC 54
Contracts – Building, engineering and related contracts – Remuneration – Statutory regulation of entitlement to and recovery of progress payments – Payment claims – Where the applicants and first respondent entered into a contract in respect of a unit complex development proposal – Where the first respondent made three payment claims – Where payment claim 1 was accepted as invalid and payment claims 2 and 3 were adjudicated under the Building and Construction Industry Payments Act 2004 (Qld) (“the Act”) – Where the applicants allege the decision of the second respondent is void or should otherwise be set aside by reason of jurisdictional error – Whether the applicants have established such jurisdictional error. Building and Construction Industry Payments Act 2004 (Qld). More...

Body Corporate for Sun City Resort v Sunland Constructions Pty Ltd & Ors (No 2) [2011] QSC 42
Practice and procedure – Supreme Court procedure – Queensland – Procedure under rules of court – Amendment. Building – Where high-rise building was constructed between 1996 and 1998 – Where lengthy period between building completion and appearance of defects – Where plaintiff body corporate commenced proceedings in tort and contract against construction companies in 2004 – Where plaintiff filed four amended statements of claim between 2004 and 2009 – Where amendments were partially in response to defendants’ complaints about pleading and particularisation – Where plaintiff experienced difficulty in gauging the extent of rectification work required and the quantum of its damages – Where plaintiff claims to be subrogated to the rights of the original building owner under s 38 of the Body Corporate and Community Management Act 1997 (Qld) – Where defendant alleges that the filing of two earlier statements of claim was ineffectual due to absence of leave required by r 376(4) of the Uniform Civil Procedure Rules 1999 (Qld) – Whether leave granted in the course of judicial case management in which consent orders were made for the filing of amended pleadings – Where plaintiff seeks leave to file fifth amended statement of claim – Where defendants oppose leave on various grounds – Whether leave should be granted. Body Corporate and Community Management Act 1997 (Qld); Uniform Civil Procedure Rules 1999 (Qld). More...

Australian Building & Construction Commissioner v Abbott (No 3) [2011] FCA 340
Industrial law – No case to answer submission by respondent – Evidence – Unlawful industrial action – Accessorial liability. Building and Construction Industry Improvement Act 2005 (Cth). More...

Contact details

Melbourne

Chris Edquist, Partner
T: +61 (0)3 9321 9919
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Sydney

Amanda Davidson, Partner
T: +61 (0)2 8083 0333
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Grant Parker, Partner
T: +61 (0)2 8083 0428
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Brisbane

Stephen Pyman, Partner
T: +61 (0)7 3135 0625
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Scott Lambert, Partner
T: +61 (0)7 3135 0681
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Troy Lewis, Partner
T: +61 (0)7 3135 0614
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Janelle Kerrisk, Partner
T: +61 (0)7 3135 0608
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Disclaimer

The information in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this publication is accurate at the date it is received or that it will continue to be accurate in the future. We are not responsible for the information of any source to which a link is provided or reference is made and exclude all liability in connection with use of these sources.