Major New Legal Obligation on Those in the Building and Construction Industries

The Design and Building Practitioners Act commenced in NSW on 11 June 2020. It imposes a retrospective 10-year duty on certain professionals in the building and construction industries to exercise reasonable care. This duty aims to prevent economic loss caused by defects in or related to buildings they worked on.

Who Owes the Duty of Care?

The duty applies to:

  • The current owner of the land where the building stands

  • Any future owners of the property

What Constitutes Construction Work?

Under Section 36 of the Act, “construction work” includes:

  • Building work, including “residential building work” as defined under the Home Building Act

  • Preparation of designs

  • Manufacture and supply of building products

  • Supervision, coordination, project management, and related activities involving the above work

Who Is Affected by the Duty?

The duty affects a wide range of professionals and contractors, including:

  • Plumbers, carpenters, painters, and builders

  • Architects and engineers

  • Building product manufacturers and suppliers

Retrospective Application and Legal Rights

The right to sue for damages due to breach of this duty applies whether the breach occurred before or after the Act commenced. This means homeowners can pursue claims for defects discovered in work completed up to 10 years prior to the Act.

Why the Act Matters

This legislation is a game changer, significantly bolstering the rights of those who have had building or construction work done in the past decade or who will have it done in the future.

Need Help With Building Defects or Construction Disputes?

If you need advice or assistance regarding building defects or your rights under the Design and Building Practitioners Act, contact A. S. Laumberg today for expert legal support tailored to your situation.