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Personal liability for residential building work
What happened in this case
Chase Building Group Pty Ltd (Chase) managed a residential development and appointed Mr Jolley, a licensed builder, as the nominated supervisor under Construction Occupations Licensing Act 2004 (COLA). When defects were found and Chase was deregistered in 2016, the Owners Corporation reported the issue to the regulator, the Construction Occupations Registrar (Registrar).
In March 2021, the Registrar issued an order under COLA, requiring Mr Jolley rectify the defects. Mr Jolley argued he was only supervising the work and should not be personally responsible. However, the Court held that someone must be accountable for ensuring work is done properly where the company no longer exists. As the licensed supervisor, that responsibility fell on Mr. Jolley.
The Court also decided that major building defects can still be ordered to be fixed up to 10 years after the work is completed. This means builders will still be responsible for problems years after a project is finished.
What does this mean for you?
This case shows that as a supervising builder, you can still be held responsible for defects, even if:
- you did not do the work yourself
- the work was subcontracted or
- the building company has been deregistered.
To lower your risk:
- check and oversee all work carefully
- keep detailed records of inspections, approvals, and instructions
- use written contracts with subcontractors that clearly outline responsibilities
- ensure your business holds the appropriate licence.
To find out more, contact HIA's Contracts and Compliance team
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The above is intended to provide general information in summary form. The content does not constitute specific advice and should not be relied upon as such. Formal advice should be sought by members and customers with respect to particular matters before taking action.
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