Duty to mitigate loss – No positive obligation on an owner to allow a builder an opportunity to rectify defective works: Ceerose Pty Ltd v The Owners – Strata Plan No 89074 [2025] NSWCA 235   “The Eliza” apartment building, in the centre of Sydney, was completed in 2014. In light of a range of defects which

In Hungerfords v Walker the High Court held that at common law a plaintiff can recover damages in the nature of interest on a compound basis for loss of use of moneys by reason of a breach of contract or negligence. Recovery in such cases is on the basis that the plaintiff has in fact suffered a

Can a Superintendent certify liquidated damages after the principal takes works out of the contractor’s hands or following termination? In Cobolt Constructions Pty Ltd v Duke Ventures Wellington Street Pty Ltd [2025] VSC 609, the plaintiff contractor (“Cobolt”) sought an interlocutory injunction to restrain recourse by the defendant principal (“Duke”) to bank guarantees provided by way of

When security under building contracts cease to operate as risk allocation devices. It is well known that the function of security under building contracts can act as risk allocation devices, meaning that a ‘pay now, argue later’ approach is adopted making it difficult for a contractor to obtain an injunction to restrain a wrongful call

When security under building contracts cease to operate as risk allocation devices.   It is well known that the function of security under building contracts can act as risk allocation devices, meaning that a ‘pay now, argue later’ approach is adopted making it difficult for a contractor to obtain an injunction to restrain a wrongful call

In April 2025, two New South Wales decisions were handed down regarding the above issue.  Those decisions are the New South Wales Court of Appeal decision of Martinus Rail Pty Ltd v Qube RE Services (No 2) Pty Ltd [2025] NSWCA 49 (Martinus Decision), and the decision of Peden J in Builtcom Construction Pty Ltd v VSD Investments Pty