January 8, 2024
Welcome to 2024 and the January edition of Projects & Construction Monthly.
This edition addresses:
- The New Year Awaits;
- BIFA Shutdown End In Sight;
- Ban On Engineered Stone;
- Recent Major Projects; and
- LPC Lawyers’ Case Year in Review Series.
The New Year Awaits – The Path Ahead
As the new year kicks off, LPC Lawyers looks back on the year that was – budget blowouts, late delivery and builder insolvencies shaping 2023. Whilst slower builds and cost blowouts will remain one of the biggest challenges of 2024, our most recent article provides further insights into what 2024 may have in stall. You can read LPC Lawyers’ article here.
BIFA Shutdown End In Sight
As construction sites reopen and workers get put to work, an important reminder that the Christmas and New Year shutdown period under the Building Industry Fairness (Security of Payment) Act 2017 (BIFA) ends after 10 January 2024.
LPC Lawyers recent article at the end of last year discusses the BIFA shutdown period, what it means and how you or your business may be impacted now or in the future. You can read about it here.
Relevantly due to the BIFA shutdown, if an invoice was received on the 21 December 2023, the first business day after will be 11 January 2024 and the due date for payment would be calculated from this date.
Further, if any invoice was given over the shutdown period between 22 December 2023 and 10 January 2024, it will be taken to have been received on 11 January 2024 and the due date for payment would be calculated from 12 January 2024.
Australian Ban on Engineered Stone
An end of year meeting held between states and territories confirmed that from 1 July 2024, Australia will ban the use, supply and manufacture of engineered stone to protect workers health, being the first country to do so.
The popular material in the construction and design industry, being the go-to solution for benchtops, poses significant health risks to workers involved in the manufacturing and installation process.
Rates of silicosis and silica related diseases in Australian workers has been a rising concern in recent years, with a disproportionate number of diagnoses among engineered stone workers.
Ministers will meet again in March 2024 to finalise the details of the implementation of the ban, including the regulation of legacy products and transitional arrangements for contracts entered into prior to the ban.
Recent Major Projects
Suburban Rail Loop (SRL) East
A $3.6 billion contract has been awarded by the Victorian Government to CIMIC Group’s CPB Contractors as part of the Suburban Connect consortium alongside ACCIONA and Ghella, to deliver the first major tunnelling package on the Suburban Rail Loop East project.
The project includes construction of a 16-kilometre section of the project’s 26 km twin tunnels, as well as tunnelling between Cheltenham and Glen Waverly, two new underground station boxes, and construction works at the Southern Stablin Yard.
Major tunnelling works are expected to commence in 2026.
Melbourne Quarter’s Build-to-Rent Residential Project – Official Sod Turn
At the end of last year, an official sod turn marked the start of works at Melbourne Quarter’s Build-to-Rent resident project – the final piece of the Melbourne Quarter precinct.
Delivered by Lendlease and Daiwa House Australia partnership, the 797 build-to-rent apartment building is located at the southern edge of Melbourne CBD.
The building will provide a range of studio and 1 to 3 bedroom apartments over 45 levels and aims to address the growing demand for long-term, premium rentals in quality locations.
Occupancy is expected to occur in early 2026. Once complete the occupants will have access to a range of amenities and communal spaces including a 25-metre lap pool, bowling alley, karaoke and music studio, co-working space, virtual sports and games rooms, cinema, fully equipped gym with spa, sauna and steam rooms.
LPC Lawyers’ ‘Case Year in Review’ Series
As the 2023 year came to a close, LPC Lawyers reflected on some of the significant construction cases that helped define crucial pieces of legislation in the construction industry.
‘Case Year In Review’ – Part 1
This article explores the decision in Perera v Bold Properties (Qld) Pty Ltd [2023] QDC 99 which was a reminder to industry participants thinking about repricing a job to ensure the price escalation clause complies with the requirements of the QBCC Act and it does not represent an unfair contract term under the Australian Consumer Law. Read more here.
‘Case Year In Review’ – Part 2
The decision In Insite Construction Services Pty Ltd v Daniels Civil Pty Ltd & Anor [2023] QSC 33 highlighted the importance of including detailed reasons in a payment schedule if the valuation of the amounts claimed is being challenged under BIFA. Read more here.
‘Case Year In Review’ – Part 3
The final part of the series discussed the key issues in Built Qld Pty Ltd v Pro-Invest Australian Hospitality Opportunity (ST) Pty Ltd (No 2) [2023] QCA 140 which concerned a dispute over a defect notice, highlighting the importance of having clear scope definitions, understanding prescriptive versus performance requirements, and the timely awareness of delays. Read more here.