[2025] QCAT 110
General information, not legal advice.
Queensland Civil and Administrative Tribunal
2025-03-26
Original judgment source is linked above.
CONTRACTS - BUILDING, ENGINEERING AND RELATED CONTRACTS - PERFORMANCE OF WORK - where applicant retained the respondent to carry out building work -- where there was no level 1 regulated contract - where building work was not carried out as agreed and was defective -- whether there was an enforceable contract between the parties -- whether the respondent owed the applicant a duty of care - whether the respondent breached the duty of care -- whether the applicant is entitled to the loss claimed
Civil Liability Act 2003 (Qld), s 4, s 9, sch 2
Queensland Building and Construction Commission Act 1991 (Qld), s 77, sch 1B
Brookfield Multiplex v Owners Corporation Strata Plan No. 61288 [2014] HCA 36
Burnell v Jarvis [2024] QCAT 126
Cerda v Jacob [2020] QCATA 57
Chau's & Sons Pty Ltd t/as Holiday Air Conditioning and Refrigeration Qld v Karam [2024] QCAT 476
Dvorak v Jensen [2023] QCAT 437
Mikita v Kontek Constructions Pty Ltd [2024] QCAT 315
McSwan & Anor v Weaver [2023] QCAT 148
Woolcock Street Investments Pty Ltd v CDG Pty Ltd [2004] HCA 16
The proceeding was heard and decided on the papers pursuant to s 32 of the Queensland Civil and Administrative Tribunal Act 2009 (Qld)
Remove approximately 25 cubic meters of concrete and pavers to be removed from site
Approximately 25 square meters to be replaced and reinforced with F72 steel mesh at 100mm thickness
Supply and match existing pavers, lay tiles to suit current driveway
Approximately 25 square meters of grey concrete reinforced at 100mm thickness. To make area for bin and under window
(a) the base thickness of the driveway does not comply with Australian Standard 3727.1 2016 ('AS 3727.1');
(b) there is no Ableflex (a closed cell polyethylene foam used as an expansion joint filler in concrete joints, brick joints, blockwork, isolation joints and hinge joints) connection between the driveway and downpipes as required by AS 3727.1; and
(c) the surface of the driveway does not comply with the AS 3727.1.
In conclusion, following the inspection of surface work in the readily accessible areas of the property, the driveway needs rework, rectification. Our clients have requested that we place in writing a formal request that all items in this report are rectified. We refer the builder to the builder's own contract with our client which calls for the builder to act on ALL KNOWN DEFECTS. All items in this report are therefore brought to the builder's attention and are therefore known to the builder. We would suggest that the builder rework the dwelling so that it complies with the minimums set out in the BCA, the Australian Standard and all other relevant requirements. If the builder feels that we are in error, we request that they justify with a counter reference that would support that position and show cause why they do not have to rectify the defects found.
(a) an invoice from Qld Environmental Projects for $18,983.80 dated 15 September 2021 to remove and replace the driveway and supply and lay pavers;
(b) a quotation from Slab Busters for $2,536.00 dated 25 August 2022 to remove sections of the driveway;
(c) a quotation from Grimezys Constructions Pty Ltd for $6,765.00 dated 4 September 2022 for the driveway; and
(d) an invoice and receipt from tile stone paver for $3,423.80 dated 8 October 2022 for supplying pavers.
[61] As I understand it, the current state of the law is that a builder does not owe a duty of care to an original owner of a building which the builder has constructed for the owner. This is because the owner is not vulnerable to loss occasioned by any wrong that might be committed in construction of that building in terms of defective work. The reason being that the home owner is not vulnerable in the sense of loss because the owner is able to protect itself from such loss by the means of a building contract.
[62] Such is the effect of the reasoning of the High Court in 2014 in Brookfield Multiplex 2014. A passage from the joint reasons therein of Hayne J and Kiefel J, as her Honour then was, is apposite given the argument raised by the applicants as to them simply relying on the respondent as a builder to have identified the relevant colour of the roof sheeting. It is as follows:
It may be assumed, without deciding, that the developer and the purchaser of a lot ... relied on the builder to do its work properly. ... Because these parties could not check the quality of what the builder was doing, it can easily be said that each relied on the builder to do its work properly.
Reliance, in the sense just described, may be a necessary element in demonstrating vulnerability, but it is not a sufficient element. As noted earlier, vulnerability is concerned with a plaintiff's inability to protect itself from the defendant's want of reasonable care, either entirely or at least in a way which would cast the consequences of loss on the defendant.
It is neither necessary nor profitable to attempt to define what would or would not constitute vulnerability. It is enough to observe that both the developer and the original purchasers made contracts ... The making of a contract which expressly provided for what quality of work was promised demonstrates the ability of the parties to protect against, and denies their vulnerability to, any lack of care by the builder in performance of its contractual obligations.
[63] There is one other passage of the reasoning in that matter which is helpful in understanding the law as it relates to the circumstances the applicants have found themselves in. It is within the joint reasons of Crennan, Bell, and Keane JJ. Having cited certain passages from the reasoning in the earlier decision in Woolcock 2004 their Honours made the following observations:
These passages accord with the primacy of the law of contract in the protection afforded by the common law against unintended harm to economic interests where the particular harm consists of disappointed expectations under a contract. The common law has not developed with a view of altering the allocation of economic risks between parties to a contract by supplementing or supplanting the terms of the contract by duties imposed by the law of tort.
Statutory provisions may supplement the common law of contract by providing for special protection to identified classes of purchasers on the ground, for example, that they may not be expected to be sufficiently astute to protect their own economic interests. Part 2C of the Home Building Act 1989 (NSW) is an example of such a statutory regime.
By enacting the scheme of statutory warranties, the legislature adopted a policy of consumer protection for those who acquire buildings as dwellings.
[64] The references to the statutory regime and statutory warranties to which their Honours were referring is the equivalent of the Home Warranty Scheme enacted in Queensland under the QBCC Act, and as relevant in this proceeding the statutory warranties enacted under Schedule 1 B of that legislation to be incorporated into every regulated contract. The latter is a relevant part of the statutory scheme the Queensland Supreme Court was concerned with in Mousa 2019.
[65] Whilst such a scheme and warranties may protect any subsequent owner of the applicants' property should they sell it, they do not protect the applicants. This is because of the absence of an effective contract entered into between them and the respondent. But the absence of same does not mean that they can be considered to have been without protection and thus can revert to the law of tort. This is because it was incumbent on them, just as much as the respondent, to give effect to the requirements of the legislation and ensure that the contract was put into writing. As the Appeal Tribunal put it in the passage I extracted from Cerda 2000 at paragraph [44] in these reasons
These minimum mandatory requirements are neither difficult for builders and building owners to comply with nor onerous in circumstances where persons contract for the performance of domestic building work.
[66] However it may be observed that, contrary to that observation, at least in part, the observation of the Tribunal at first instance in Judd 2022 was that the home owner was vulnerable in that she would not have been alerted to, nor appreciated the significance of, the availability of protections that a contract may have afforded.
[67] Returning once again to the words of the Appeal Tribunal in Cerda 2020, to which I referred earlier in these reasons:
If parties contract for the performance of domestic building work without complying with these requirements they do so at their own peril and without the protections afforded by a contract or the statutory warranties implied into such contracts.
[68] A similar observation, but one with a more expansive point being covered, was made by the learned Member in Clarke v Queensland Building and Construction Commission:
More to the point, level 2 regulated contracts are significant contracts. The statutory requirement for them to be in writing, dated and signed by or on behalf of both parties is there for a self-evident reason - to minimise disputes, of which the current matter is an example, about the terms of such contracts. There is obviously a consumer protection element to the evident policy of the legislation, but there is also a broader public interest in the minimisation of disputes the resolution of which, through publicly-funded mechanisms such as the Commission's and Tribunal's review processes, comes at a cost to the general public. It is prudent for owners entering into significant arrangements with builders to ensure they have a written contract signed by both parties and dated. Parliament's plain intention is that owners or builders who fail to observe that requirement do so at their peril.
(Citations omitted)
4.1. As noted above, there are two separate parts to the Applicant's claim, being:
(1) that I should refund the moneys the Applicant paid to me because I was unlicensed - as detailed above, I incurred reasonable remuneration that I am entitled pursuant to section 42(4) of the Act to keep; and
(2) that I am liable in accordance with the tort of negligence to pay the Repair Costs - as detailed above the recent common law position supports the conclusion that I do not owe a duty of care to the Applicant, and therefore cannot be compelled to pay the Repair Costs.
4.2. It is my view that both the legal and common law position suggests the only reasonable conclusion to be drawn is that the Application must be dismissed, on the above basis.
(a) whilst preparation work may not have required a contractor's licence, it formed part of the building work Mr Jensen was engaged to carry out which required a licence;
(b) the only acceptable evidence of reasonable remuneration for carrying out the building work is the cost of concrete supplied in the sum of $1,518.89; and
(c) the quotation to repair the damage to the concrete driveway provided by Mr Jensen to what Ms Dvorak included 'Supply and match existing pavers, lay tiles to suit current driveway'; and
(d) there are fundamental differences between the facts in McSwan and the facts here.
What this extensive judicial reasoning shows us is that 'it is not what the applicants did that matters, it is what they could have done'. To put it in terms of the facts - it is not the fact that they entered into a contract that was of no effect that left them vulnerable, it is the fact that they could have, and moreover were required by legislation to have, entered into a contract reduced to writing that complied with the requirements of Schedule 1B of the QBCC Act that would have provided them with the benefit of the statutorily imposed warranties under that legislation, thus affording them protection against failure by the respondent to have done that which they say they assumed he would do, thus they were not vulnerable.
... a duty of care may, in particular cases, arise between a building contractor and a homeowner despite a failure to comply with the statutory requirements of a regulated contract (and the consequential loss of the benefit of the statutory warranties under the QBCC Act), as is consistent with the approach adopted by Member Deane in [Burnell v Jarvis [2024] QCAT 126].[8]
On the other hand, there are strong reasons for acknowledging the existence of a relevant relationship of proximity between a builder such as Mr Bryan and a first owner such as Mrs Manion with respect to the kind of economic loss sustained by Mrs Maloney. In particular, the ordinary relationship between a builder of a house and the first owner with respect to that kind of economic loss is characterized by the kind of assumption of responsibility on the one part (i.e. the builder) and known reliance on the other (i.e. the building owner) which commonly exists in the special categories of case in which a relationship of proximity and a consequent duty of care exists in respect of pure economic loss. There is nothing to suggest that the relationship between Mr Bryan and Mrs Manion was not characterized by such an assumption of responsibility and such reliance.[14] (Emphasis added)
(a) some of the building work carried out by him did not require a contractor's licence;
(b) he is entitled to the amount paid by him in supplying materials and labour; and
(c) he incurred costs in supplying materials and labour to complete and rectify the building work.
(a) the risk was foreseeable (that is, it is a risk of which the person knew or ought reasonably to have known);
(b) the risk was significant; and
(c) in the circumstances, a reasonable person in the position of the person would have taken the precautions.
Refund of the money paid by her to Mr Jensen $13,983.80
Cost to remove and replace the defective concrete driveway
(a) the contract between the parties did not comply with section 13(2) of schedule 1B to the QBCC Act and therefore had no effect;
(b) Mr Jensen owed Ms Dvorak a duty of care in carrying out the building work;
(c) Mr Jensen breached the duty of care; and
(d) Ms Dvorak is entitled to damages in the sum of $5,858.88 consequent on Mr Jensen's negligent acts.
[1] [2023] QCAT 148, at [61] - [86].
[2] See Dvorak v Jensen [2023] QCAT 437 ('Dvorak No. 1').
[5] QBCC Act, sch 2, the definitions of building owner and building contractor.
[14] Ibid, per Mason CJ and Deane and Gaudron JJ at [14].
[17] Fangyuan v Stockwell [2024] QDC 200, per Rosengren DCJ at [90].
[18] The amount claimed is less than the amount quoted. The reason for the difference is not explained.
Dvorak
Jensen [2025] QCAT 110