[2025] NSWCATCD 185
General information, not legal advice.
NCAT Consumer and Commercial
2025-10-15
Original judgment source is linked above.
(1) the builder pay the subcontractor $55,240 in respect of work completed;
(2) The builder pay the respondent $11,750 in respect of variations;
(2) The builder pay the respondent $98,667.75 in respect of damages, comprising:
(a) $82,860 in lost profits arising from increasing the contract length; and
(b) $35,148 in additional work required to complete the contract.
(3) the builder pay $19,340.25 in respect of the subcontractor's legal and expert costs; and
(4) dismissal of the builder's cross claim.
18B Warranties as to residential building work
(1) The following warranties by the holder of a contractor licence, or a person required to hold a contractor licence before entering into a contract, are implied in every contract to do residential building work -
(a) a warranty that the work will be done with due care and skill and in accordance with the plans and specifications set out in the contract,
(b) a warranty that all materials supplied by the holder or person will be good and suitable for the purpose for which they are used and that, unless otherwise stated in the contract, those materials will be new,
(c) a warranty that the work will be done in accordance with, and will comply with, this or any other law,
(d) a warranty that the work will be done with due diligence and within the time stipulated in the contract, or if no time is stipulated, within a reasonable time,
(e) a warranty that, if the work consists of the construction of a dwelling, the making of alterations or additions to a dwelling or the repairing, renovation, decoration or protective treatment of a dwelling, the work will result, to the extent of the work conducted, in a dwelling that is reasonably fit for occupation as a dwelling,
(f) a warranty that the work and any materials used in doing the work will be reasonably fit for the specified purpose or result, if the person for whom the work is done expressly makes known to the holder of the contractor licence or person required to hold a contractor licence, or another person with express or apparent authority to enter into or vary contractual arrangements on behalf of the holder or person, the particular purpose for which the work is required or the result that the owner desires the work to achieve, so as to show that the owner relies on the holder's or person's skill and judgment.
(2) The statutory warranties implied by this section are not limited to a contract to do residential building work for an owner of land and are also implied in a contract under which a person (the principal contractor) who has contracted to do residential building work contracts with another person (a subcontractor to the principal contractor) for the subcontractor to do the work (or any part of the work) for the principal contractor.
"Although objective standards such as Australian Standards, the Building Code of Australia and the Guide are of significant relevance in establishing whether work has been performed in a proper and workmanlike manner (Wheeler v Ecroplot Pty Ltd [2010] NSWCA 61 at [10]), the absence of such evidence does not automatically mean a homeowner has failed to establish breach of statutory warranty. In our view, the relevant principle was succinctly stated by Senior Member Goldstein in G MacFayden and Anor v G Tadrosse [2014] NSWCATCD 194 at [46] as follows:
'...[E]vidence that work does not comply with the Building Code of Australia would establish a basis for a finding that sub section 18B(c) of the Act has been breached. Evidence of the details in which work does not comply with the contractual plans and specifications would form the basis for a finding that sub section 18B(a) of the Act has been breached. Evidence of work not being carried out in a proper and workmanlike manner would in my view involve identification of the work in question, a statement of how the expert would expect it to be carried out in in a proper and workmanlike manner and then identification of the factors which establish that the way in which the work has been carried out falls short of it being carried out in a proper and workmanlike manner. Evidence of this nature, if accepted, would form the basis for a finding that sub section 18B(a) of the Act has been breached.'"
(1) whether the homeowner has established on the balance of probabilities that the works have not been performed in accordance with s 18B of the HB Act; and
(2) then, where a defect is established, what is the appropriate method to rectify that defect and the cost of rectification.
"Everything on the first floor will be finished Sunday 22nd.
Everything on the ground floor will be finished on 26th September.
This does not account for ongoing damage and other trades in the way.
26th September is my last working day on this project."
Hi Peter, it is with deep regret and sadness that I am having to cease my work at Trahlee Road. I was given written instructions that the schedule was three months. I quoted accordingly. It's now almost 6 months and we've painted most internal surfaces twice due to the house being filled with concrete dust.
(a) settled on surfaces where paint was to be applied; and
(b) settled on surfaces after paint was applied."
"Repudiation of a contract occurs when a party breaches a fundamental or essential term of the contract; or there was a sufficiently serious breach of a non-essential term of the contract; or a party demonstrates an unwillingness or inability to render substantial performance of the contract and the innocent party elects to accept the repudiation and treat the contract as having ended: Koompahtoo Local Aboriginal Land Council & Anor v Sanpine Pty Ltd [2007] HCA 61; (2007) 233 CLR 115
As a general rule, wrongful termination of the performance of a contract, where a party has no legal right to do so, will constitute a repudiation of obligation because such an act indicates an absence of readiness or willingness on the part of the party who has wrongfully terminated to perform its obligations under the contract: Ogle v Comboyuro Investments Pty Ltd [1976] HCA 21; (1976) 136 CLR 444 at 453; Curnow Consulting Pty Ltd v JPD Media and Design Pty Ltd t/as Durie Design [2017] NSWSC 1171 at [344]."
Is the subcontractor liable for defective work?
(1) all window and door surfaces were defective and required scraping and repainting;
(2) the cupboard doors paint was peeling; and
(3) the walls going up to the attic was completed poorly.
(1) attic, requiring two additional coats;
(2) rear staircase walls, where only one coat applied;
(3) timber balustrade not commenced; and
(4) back bathroom windows not commenced.
(1) the lounge room windows and doors were peeling;
(2) all windows and doors were poorly finished; and
(3) the fireplace mantel was damaged
(1) lounge room walls, where only one coat of paint was applied;
(2) bookshelves, where only primer was applied;
(3) fireplace mantel between the wall and fireplace;
(4) small bathroom, ceiling incomplete and walls not commenced;
(5) kitchen walls, windows and butler's kitchen cupboards;
(6) kitchen cupboards, where only undercoat applied;
(7) laundry not commenced; and
(8) Internal lift walls unfinished.
(1) all walls except the top floor front façade and right side wall adjacent the alley way;
(2) all ceilings;
(3) shutters;
(4) pool cabana; and
(5) metal balustrades and gates.
18F Defences
(1) In proceedings for a breach of a statutory warranty, it is a defence for the defendant to prove that the deficiencies of which the plaintiff complains arise from--
(a) instructions given by the person for whom the work was contracted to be done contrary to the advice of the defendant or person who did the work, being advice given in writing before the work was done, or
(b) reasonable reliance by the defendant on instructions given by a person who is a relevant professional acting for the person for whom the work was contracted to be done and who is independent of the defendant, being instructions given in writing before the work was done or confirmed in writing after the work was done.
I also need professional cleaning please.
I am a professional and cannot achieve quality in this working environment, its really unfair, costs me more time and money and is totally unnecessary...
I'm confident that if my concerns can be addressed this week then I am on track to delivery according to schedule which I'm led to believe is end of September.
(1) Invoice 0428 dated 3 October 2024 in the amount of $10,550 in respect of library and living wall painting, shutters and ceiling repainting; and
(2) Invoice 0426 dated 3 October 2024 in the amount of $1200 in respect of rendered wall repainting.
Re undercoating front lower render due to new render for textural change $1200... understood and approved.
I am not expecting you to absorb all these charges, I am just trying to have everything documented and understand the breakdown of all these items so it can be assessed.
....
Living and library prep and paint walls over stucco - $7,250 - clarify this item please.
All ceilings additional coat due too dust $2500
....
Does this mean you have done an extra coat on all GF and FF ceilings?
"- All ceilings and walls to be sanded prior to the application of paint and in between each coat for paint for maximum adhesion and quality of finish.
- All woodwork to be hand or mechanically sanded/abraded prior to painting and in between coats of paint...
- Tack cloth to be used to remove all dust and lint before and between each coat of paint"
Did the builder breach the contract by failing to provide a safe workplace
(1) The Artful Decorator Pty Ltd is to pay Sandlik Constructions Pty Ltd the sum of $76,386 within 14 days of the date of these orders.
(2) If either party seeks an order as to costs, they are to lodge their application with submissions within 7 days of the date of these Orders
(3) Any submissions in opposition to an application for costs is to be lodged with the Tribunal and sent to the other party within 14 days of the date of these Orders.
(4) The Tribunal proposes to determine the issue of costs on the papers without a hearing under s 50(3) of the Civil and Administrative Tribunal Act 2013. Parties must include in their submissions whether they consent to this course or if they do not consent, why.
(5) Any submissions on costs must be no longer than three pages.
I hereby certify that this is a true and accurate record of the reasons for decision of the Civil and Administrative Tribunal of New South Wales.
(1933) 48 CLR 457
(2007) 233 CLR 115
(1976) 136 CLR 444