Building reforms in NSW - A new duty of care and greater regulation of construction process
Limelight 07/20
The NSW government has recently introduced two pieces of consumer protection legislation as part of broader building reforms aimed at instilling confidence back in the construction industry, in light of well-publicised defects in the Opal Tower and the Mascot Towers. The significance of these changes are likely to have marked impacts on construction professionals and their insurers. In a significant departure from the seminal High Court decision in Brookfield Multiplex Ltd v Owners Corporation Strata Plan 61288[1], the Design and Building Practitioners Act 2020 (NSW) (DBP Act) introduces a new statutory duty owed by construction professionals to owners, including subsequent owners, to exercise reasonable care to avoid economic loss caused by defects. The Residential Apartment Buildings (Compliance and Enforcement Powers) Act 2020 (NSW) (RAB Act) commences on 1 September 2020 and provides the Department of Customer Service with powers to manage building developments during the construction phase. Design and Building…
