Fuel Security and Minimum Stockholding Obligations: What it means for you and your business

In 2021, the Australian Government introduced the Fuel Security Act 2021 (Cth) (the Act) to establish a national fuel reserve, aiming to minimise the impact of supply disruptions on fuel users and industries, including in the construction, transport and resources sectors. The Act and the Fuel Security (Minimum Stockholding Obligation) Rules 2022 (Cth) require persons …

Have your say on the new AS4000-2024

After 27 years, the Australian Standard General Conditions of Contract, AS4000, is receiving an update. The proposed update has just been released for public comment until 29 May 2024 and is accessible via the Standards Australia website here. [i] Although a lot has changed in 27 years, the amendments to AS4000 are not radical. The drafting …

Proposed clarity regarding Project Trust Accounts

Who should read this? All principals, head contractors and subcontractors performing building and construction work in Queensland. Proposed Project Trust Account Clarifications On 14 February 2024, the Building Industry Fairness (Security of Payment) and Other Legislation Amendment Bill 2024 (Qld) (Bill) was introduced with the aim of clarifying the operation of the project trust account …

Outcomes of Developer Review Panel

Proposed reforms for developers in Queensland’s building and construction industry. The independent Developer Review Panel (Panel) appointed under the Queensland Building and Construction Commission Act 1991 (Qld) (QBCC Act) has proposed a more stringent framework for developers in the building and construction industry in Queensland. Late last year, the Panel released its discussion paper on …

Further delays to the rollout of the Project Trust Account regime

Who should read this All principals, head contractors and subcontractors performing building and construction work in Queensland. Project Trust Account (PTA) regime The implementation of the PTA regime has again been delayed. Phase 3 (eligible contracts valued over $3 million) and Phase 4 (eligible contracts over $1 million) were to commence on 1 April 2023 …

Role of property developers under review and significant industry reforms foreshadowed

Introduction On 2 November 2022, the Developer Review Panel (Panel) convened by the Queensland Parliament released its long-awaited discussion paper in respect of the role of property developers operating in the Queensland building and construction industry (Discussion Paper) which can be found here. The Discussion Paper raises 38 potential ‘options’ (or potential reforms) for consideration …

How co-ownership and common-user infrastructure can kickstart Australia’s new economy minerals boom

Introduction The Australian Government’s Critical Minerals Strategy 2022 lists 26 minerals as priority areas for development and investment in Australia. These minerals are not new discoveries, but their application to new technologies presents a significant economic opportunity for Australia: they represent a transitional sector which will reduce carbon emissions, and are a major national security …

Offshore wind on Australia’s horizon

The realisation of offshore wind projects in Australia is shifting closer, thanks to a more renewables-focused Commonwealth Government, increased cost competitiveness of renewable projects, and fluctuations in the fossil fuel markets. Australia moves to declare its first offshore renewable energy zone Most recently, the Minister for Climate Change and Energy, Chris Bowen MP, announced his …

QBCC Governance Review Report released – key recommendations examined

Overview The QBCC Governance Review 2022 report (Report) authored by Jim Varghese AM was released on 29 June 2022, along with the Queensland Government’s response (Response). The Review contains 17 recommendations (and 77 actions) which are stated to address the gap between where the Queensland Building and Construction Commission (QBCC) is now and where it …

The DBP Act’s statutory duty of care under the microscope

Overview The statutory duty of care introduced under the Design and Building Practitioners Act 2020 (NSW) (DBP Act) has been the subject of three recent Supreme Court of NSW decisions, which are among the first to consider its application. McCullough Robertson’s Insight articles dated 16 July 2020, 20 August 2020 and 28 June 2021 previously …

QBCC head contractor licensing exemption confirmed as remaining in force

Overview The head contractor licensing exemption under section 8, Schedule 1A of the Queensland Building and Construction Commission Act 1991 (Qld) (QBCC Act) has officially been confirmed as remaining in force, with the Building and Other Legislation Amendment Act 2022 (Qld) (the Amendment Act) receiving assent on 10 June 2022.  McCullough Robertson’s Insight article dated …

When dual roles collide: a cautionary tale for principals and superintendents

The Victorian Supreme Court case of V601 Developments Pty Ltd v Probuild Constructions (Aust) Pty Ltd [2021] VSC 849 (decided on 22 December 2021[1]) (V601 Developments) is a cautionary reminder that principals: Background V601 Developments Pty Ltd (V601) and Probuild Constructions (Aust) Pty Ltd (Probuild) were parties to an amended AS4902-2000 contract (Contract) for Probuild …

Stay of execution for the QBCC head contractor licensing exemption

On 29 March 2022, the Building and Other Legislation Amendment Bill 2022 (Qld) (Bill) was introduced. If passed, the Bill will mean that the current QBCC head contractor licensing exemption will not be abolished as previously foreshadowed. Additionally, a licence category may be introduced for head contractors undertaking high-risk work. A quick refresher: What is …

Parliament Rectifies Problems with Directions to Rectify

Under section 72 of the Queensland Building and Construction Commission Act 1991 (Qld) (QBCC Act), the Queensland Building and Construction Commission (QBCC), is able to direct a person who carried out building work to rectify such work if it is defective or incomplete. The QBCC Act also sets out mechanisms regarding when a direction can …

Tools down – What happens to construction projects during the holiday period?

With the festive season upon us, members of the construction industry are looking forward to – and preparing for – a well-deserved break. For most projects, late December and early January means ‘tools down’ for an extended period (Shutdown Period), as many of us enjoy the festive season. So, what happens to the project during …

Overhaul of WA’s security of payment regime

Who should read this All construction industry participants in Western Australia (WA). What you need to know The Building and Construction Industry (Security of Payment) Bill 2021 (Bill) was passed by the WA Parliament on 22 June 2021, bringing significant reforms to the current security of payment laws in WA. The reforms will align the …

Roll out the Regulations: Design and Building Practitioners Regulation 2021 (NSW)

[vc_row][vc_column][vc_column_text] On 11 June 2020, the first phase of the Design and Building Practitioners Act 2020 (NSW) (DBP Act) commenced, implementing a new statutory duty of care regime requiring any person who carries out construction work to exercise reasonable care to avoid pure economic loss caused by defects.  The DBP Act is part of significant …

Queensland’s new project trust regime to commence on 1 March 2021

Who should read this All principals, head contractors and subcontractors performing building and construction work in Queensland, in particular those involved in State Government projects. Things you need to know Last year, we flagged the introduction of the new project trust regime under the Building Industry Fairness (Security of Payment) Act 2017 (Qld) (BIF Act) …

Electricity Infrastructure Investment Bill passes NSW Parliament Upper House – what you need to know

On 25 November 2020, the Electricity Infrastructure Investment Bill 2020 (NSW) (Renewables Bill) passed the NSW Parliament Upper House following over 30 hours of ongoing debate that challenged 249 proposed amendments.  With the Renewables Bill expected to be assented to before the end of 2020, it is guaranteed to shake up the NSW energy market …

Business Interruption Insurance – COVID-19 Test Case creates opportunity for loss recovery

The outbreak of the COVID-19 pandemic in Australia and overseas has had a hugely damaging economic effect on the business community. Many of these businesses hold Business Interruption (BI) insurance and may have either had claims declined or not pursued them on advice that the policy did not respond. Alternatively, they may not have considered …

Alignment across the States: A fundamental overhaul of security of payment regulation in Western Australia

Overview On 23 September 2020, the Parliament of Western Australia (WA) introduced the broad-ranging Building and Construction Industry (Security of Payment) Bill 2020 (WA) (SOP Bill) to the Legislative Assembly.  It proposes a fundamental overhaul of security of payment regulation in WA by replacing the existing regime under the Construction Contracts Act 2004 (CC Act) …