News
Construction industry expects 100,000 job losses
The construction industry says it expects up to 100,000 people to be laid off over the next 12 months, despite the Federal Government's stimulus efforts and the recent series of interest rate cuts (06 April 2009)
Asbestos playground: kids used toxic material as chalk
The Northern Territory's Minister for Indigenous Policy says she is concerned by reports that children at an Aboriginal community in her electorate have been playing in asbestos material. Elders in the community say they are extremely concerned about asbestos from demolished houses, some of which are located within 100 metres of the community (03 April 2009)
Govt plays down 'wild rivers' community impact
The Queensland Government says Cape York communities in the state's far north will not be disadvantaged by the declaration of three more so-called 'wild rivers'. Natural Resources Minister Stephen Robertson says the declaration does not stop activities like mining and grazing, but any development has to be environmentally sensitive (03 April 2009)
Qld schools dip into federal funds
Almost 1400 Queensland schools are booked for a federally-funded facelift. Federal Education Minister Julia Gillard has announced that 1,359 schools in Queensland will share in $195.3 million for minor infrastructure and refurbishment projects (05 April 2009)
Sun Coast sand mine plans shock green group
An environmental group says it is shocked by the Sunshine Coast Council's plans to allow future sand mining at Meridan Plains near Caloundra. The council wants to amend its planning scheme to allow mining in the 100 hectare Meridian Plains Extractive Resource Area (06 April 2009)
Arrow strikes lucrative deal with Beach Petroleum
Arrow Energy acquires Beach Petroleum’s 40 percent stake in the Tipton West joint-venture coal seam gas project. Chief Executive Shaun Scott says it is an outstanding acquisition for Arrow that not only enhances its reserves position, but simplifies Tipton West joint-venture arrangements (03 April 2009)
Commission decision on redundancy will cost millions
Modern awards for the building and construction industry released today by the AIRC could push up residential and commercial construction costs and cost consumers millions of dollars. Master Builders Australia Chief Executive Wilhelm Harnisch says amendments to redundancy provisions to include a much broader definition of redundancy in the modern awards are a “mistake” (03 April 2009)
Off goes the tap, down the drain go projects
Governments will have to stump up more of their own cash to fund major infrastructure. The problem facing PPPs is not the model, but the financial challenges from a global financial crisis, says the head of Infrastructure Partnership Australia, Brendan Lyon. "Australia still needs PPPs to deliver infrastructure needs but there is a significant short-term problem with financing (03 April 2009)
Long wait for mine site compo
Twenty-seven home owners still waiting for compensation or repairs since the incident last April are now pursuing legal action with lawyers. Collingwood Park residents whose homes were damaged by mine subsidence are demanding the State Government reveal criteria for financial aid (30 March 2009)
Company threatens unions
Unions have been warned they face potential financial ruin and nearly $10 million in fines and damages over an industrial dispute at the West Gate Bridge that has included allegations of violence, sabotage and breaches of the Trade Practices Act. Contractor John Holland, has warned senior officials of the Construction, Forestry, Mining and Energy Union and the Australian Manufacturing Workers Union to stop their "current unlawful conduct" or face potential ruin (02 April 2009)
CBD Metro: taxpayers to compensate light rail
The New South Wales Government says it will not have to pay compensation to the operators of Sydney's light rail when the CBD Metro is built along a similar route. If the Government wants to install any other service that might compete for the same market - especially a $4.8 billion automated subway - then operation of that service will trigger compensation (04 April 2009)
Growing the green collar workforce
Building codes regulator to discuss bushfire code concerns
The CSIRO has publicly criticised the code, saying it weakens the material and design requirements for some buildings in bushfire-prone areas. It is specifically concerned about protections for raised floors and gaps and vents that are vulnerable to ember attack, and the use of combustible materials (31 March 2009)
Airport link fallback plan needed: Langbroek
The State Government must outline contingency plans for the $4.8 billion Airport Link tunnel project now threatened by legal action in Melbourne and Brisbane, new Opposition Leader John-Paul Langbroek said yesterday. Leighton Holdings, which has a contract to build the infrastructure for the toll road, has argued the wind-up proposal is not in the best interests of unit holders (03 April 2009
Quarry legal rows still haunt residents
The Barro Group argues the proposed expansion will allow the company to rehabilitate the existing quarry area and restore the natural environment. It says the land is marked as a key resource area. The legal wrangling comes as the State Government continues to investigate the quarry company over claims it had removed construction materials from a public road without permission (03 April 2009
OZ Mins receives $US1.2bln alternative proposal from Minmetals
OZ Minerals Ltd has received a $US1.2 billion ($A1.74 billion) proposal from its Chinese suitor to acquire a suite of the miner's assets and received an extension to its debt refinancing obligations (01 April 2009)
I will pay-up, promises builder
Failed high-profile Sunshine Coast builder is vowing to pay back creditors. He has also told customers that arrangements are being made for other builders to take over their contracts. The Building Service Authority has suspended Mr Miller’s licences (01 April 2009)
La Trobe fights Baracon over $16m clean-up
Cardno secures $150 million Papua New Guinea contract
Sustainable infrastructure contractor Cardno wins $150 million contract under the Papua New Guinea–Australia Law and Justice Partnership. The team will try to achieve greater efficiency in government services, private sector development, protection of human rights and improved democratic systems. Director Buckley says there are also possible opportunities for Cardno in the public sector, such as transportation and major infrastructure projects (01 March 2009)
Defining emissions intensive industries under the Carbon Pollution Reduction Scheme
Seven of the emissions-intensive trade-exposed activities that may be eligible for free permits under the Carbon Pollution Reduction Scheme have had their activity defined to allow for the next stage of data collection. Firms will receive free permits in relation to their production levels and calculated by reference to the average emissions of their particular industry activity for Silicon, Carbon black, Glass containers, Fused alumina, Synthetic rutile, Methanol and Zinc smelting. The approved activity definitions are available at:
http://www.climatechange.gov.au/(01 April 2009)
Former Director of Newcastle and Sydney-based roofing company pleads guilty
Mr Whitehouse, an undischarged bankrupt, entered a guilty plea to breaching his duty as a director of MGW Roofing (Newcastle) Pty Ltd, in that he dishonestly used his position with the intention of directly or indirectly gaining an advantage for MGW Roofing (Sydney) Pty Ltd by transferring funds from MGW Roofing (Newcastle) Pty Ltd to MGW (Sydney) Pty Ltd (30 March 2009) Former Director pleads guilty
Encountering latent conditions
Contractors, faced with the assumption of risk, price their tenders accordingly. A latent condition clause is designed to avoid tenderers increasing their prices to take account of an unpredictable risk and a risk which might never eventuate (29 March 2009)
Santos lodges draft EIS for gas project
WA: Company fined for lack of tilt-up safety training
Cases
Cook's Construction P/L v SFS 007.298.633 P/L (formerly trading as Stork Food Systems Australasia P/L) [2009] QCA 075
In 2008, in the Supreme Court of Queensland, a Subcontractor secured a judgment against a Contractor for $132,000 plus interest being the balance payable for work performed by the Subcontractor. However, the Contractor in those same proceedings was successful in its counterclaim against the Subcontractor in an amount of $9.9M (with interest $15M). The Contractor successfully argued that the Subcontractor was unlicensed and that the payments it had made to the Subcontractor should be repaid.
In this case, the Subcontractor sought to appeal the decision. The appeal was unsuccessful.
RESTITUTION – MISTAKE: RESTITUTION ARISING FROM A PLAINTIFF'S MISTAKEN ACTIONS – RECOVERY OF MONEY PAID UNDER MISTAKE – RELEVANT PRINCIPLES – where appellant and respondent related as sub-contractor and contractor – where appellant warranted to respondent that appellant licensed builder – where respondent paid to appellant moneys for services rendered on that basis – where appellant not licensed builder – where respondent claimed against appellant for moneys had and received insofar as respondent paid appellant on mistaken belief as to appellant's entitlement under contract – where appellant claimed respondent's action should fail insofar as the respondent did not disprove the appellant's entitlement to reasonable remuneration under s 42(4) of the Queensland Building Services Authority Act 1991 (Qld) – whether respondent's action for moneys had and received maintainable
IDEAL FIBRECRETE CONSTRUCTION PTY LTD V KNEEBONE [2009] CCT BD043-09
QUEENSLAND BUILDING SERVICES AUTHORITY v HARLEQUIN PAINTS PTY LTD (IN LIQUIDATION) [2009] CCT QD026-05
Disciplinary proceedings against company in liquidation- Corporations Law 2001 (Cth) section 471B - Whether leave to proceed necessary from “a Court”- Held that unless leave is obtained-
1 Tribunal has jurisdiction to determine that proper grounds exist for disciplinary action;
2 Tribunal has jurisdiction to cancel existing licences;
3 Tribunal has no jurisdiction to order a monetary penalty;
4 Tribunal has no jurisdiction to order compensation;
5 Tribunal has no jurisdiction to order costs.
(QBSA v Exit Fire Pty Ltd in liq. L011-04 18 May 2005 not followed)
DARLING DOWNS CONSTRUCTIONS PTY LTD v THOMAS & BROSNAN [2009] CCT BD312-06
Contractual proceedings – declaration pursuant to section 77(2)(e) of the Queensland Building Services Authority Act 1991 – liquidated damages and completion clauses of no effect and varied – damages for delay at large – second limb of the rule in Hadley v Baxendale –no appearance at
hearing by applicants
Alfred v Wakelin (No 4) [2009] FCA 267
Draffin v Construction, Forestry, Mining and Energy Union [2009] FCA 243
INDUSTRIAL RELATIONS – contraventions of ss 43 and 45 of the Building Industry Improvement Act 2005 (Cth) – contraventions of s 298P of the Workplace Relations Act 1996 (Cth) – contraventions admitted – determination of penalty to be imposed
Building and Construction Industry Improvement Act 2005 (Cth) ss 43, 45, 69
Workplace Relations Act 1996 (Cth) s 298P
National Building and Construction Industry Award 2000
Articles and Reports
Taxpayers deserve a better funding system
Author: Graeme Hodge
Source: Opinion, the Age, 31 March 2009
THE PPP (public-private partnership) policy experiment has been wonderfully ambiguous and colourful. It has promised just about everything to everybody, from better value for money and on-time delivery, to innovation and reduced pressure on public sector budgets
Calling up bank guarantees: VDS Construction & Joinery QLD Pty LTD v Sanctuary Properties Pty Ltd & Anor [207] QSC 332
Author: Yap, Brandon
Source: Australian Construction Law Newsletter, No 124, January/February 2009: p58-59
Insurance: Design and Construct Contractors – when the hat doesn’t fit
Author: Andrew, Nicholas, Rose, Wesley
Source: Australian Construction Law Newsletter, No 124, January/February 2009: p36-37
Managing your intellectual property in major projects
Author: Still, Mary, Webb, Timothy
Source: Australian Construction Law Newsletter, No 124, January/February 2009: p38-41
Breaching copyright and personal liability – how your behaviour matters
Author: Jason Sprogue
Source: Australian Construction Law Newsletter, No 124, January/February 2009: p42-43
National model OHS laws – what is proposed
Author: Constantine. Lea et al
Source: Australian Construction Law Newsletter, No 124, January/February 2009: p14-15
Attorney-General announces review of International Arbitration Act
Author: Martigioni, Andrea, Nygh, Nicola, Brown, Anna
Source: Australian Construction Law Newsletter, No 124, January/February 2009: p28-29
Practice
QLD: Rainwater tanks—mosquito protection and first flush devices
Local government officers, building certifiers, plumbers, installers and owners of
mandatory requirements for rainwater tank safety—including requirements under the Queensland
Development Code (QDC) mandatory parts (MP) 4.2 and 4.3 are reminded of the importance of mosquito protection and the installation of first flush devices for rainwater tanks
Legislation
Commonwealth
AusLink (National Land Transport) Act 2005 - Determination of the AusLink Roads to Recovery List pursuant to section 87 of the Act - Instrument No. 2009/1
This instrument lists the bodies to receive Roads to Recovery funding between July 2009 and June 2014 and the amounts each is entitled to receive. Date Registered: 31/03/2009
Queensland
Regulations
Disaster Management (Further Extension of Disaster Situation—Brisbane) Regulation (No. 2) (SL No 29 of 2009)
"The material contained in this publication is no more than general comment. Readers should not act on the basis of the material without taking professional advice relating to their particular circumstances”
