In the recent decision of Add-Vantage Systems Pty Ltd v Ameks Developments Pty Ltd, heard by the Civil and Administrative Tribunal of New South Wales, construction disputes surrounding the adequacy of building work and compliance with statutory warranties were critically analysed. The case, cited as [2019] NSWCATCD 57, concluded on 09 July 2019, focusing on breaches of Section 18B of the Home Building Act 1989.
Parties Involved
The dispute featured two main parties:
- Applicant: Add-Vantage Systems Pty Ltd (Builder)
- Respondent: Ameks Developments Pty Ltd (Supplier)
Nature of the Dispute
This case arose from a construction dispute regarding the supply and installation of aluminium windows and doors. The supplier alleged that these installations were defective, claiming breaches of:
- Warranty that work would be done with due care and skill
- Warranty that materials supplied would be good and suitable for the purpose
Specific defects included:
- Improper workmanship of the aluminium framing
- Failure to install appropriate drainage slots
- Installed aluminium frames that were not fit for purpose
- Selection of glass and frames that were not fit for purpose
Claim Details
The amount claimed by the supplier was $25,844 for the unpaid work. Additionally, Add-Vantage Systems filed a counter-claim, seeking $250,000 for rectification costs due to the alleged defective work.
Key Findings
The tribunal determined that breaches of Section 18B were present, which implied warranties were breached, including:
- Defective installation was classified as a significant defect
- Builder was found liable for defective work, particularly in the installation of windows and doors
Outcome
The tribunal ordered:
- Builder, Ameks Developments Pty Ltd, to pay $25,844 to the supplier
- Rectification of the defective work must be executed as dictated by a work order
Key Sections and Interpretation of the Home Building Act and Relevant Case Precedents
The interpretation of Section 18B in this case reinforced the importance of implied warranties that require work to be conducted with due care, skill, and compliance with specified materials.
- BP Refinery (Westernport) Pty Ltd v Hastings Shire Council – Clarified standards of workmanship.
- Feast Contractors v Ray Vincent Limited – Addressed reliance on the builder’s skill and judgment.
- The Owners Strata Plan 62930 v Kell & Rigby Holdings Pty Ltd – Provided insight on warranty interpretations.
