Although the year isn’t quite over yet 2025 has delivered a number of judgments from the NSW courts that provide useful lessons that construction industry participants would do well to learn from. These cases provide practical guidance on how courts interpret Building and Construction Industry Security of Payment deadlines, evaluate documentation, and enforce contractual terms.
The construction industry in New South Wales has seen major reforms in recent years. Central to these is the introduction of the Design and Building Practitioners Act 2020. Brought into force in 2020, the legislation was created to address long-standing concerns about defective buildings, gaps in accountability, and a lack of confidence in the industry.
In the commercial construction space, limitation and exclusion of liability clauses serve as a key risk management tool. These clauses can limit or exclude types of liability of one party to another, providing certainty and predictability in the event of a dispute. That said, a poorly drafted clause can be worse than none at all. Courts require clear, unambiguous wording, and overly broad or vague provisions may not be enforceable. Or, they may be interpreted contrary to how the parties intended them to operate.
It’s the call no principal or developer wants to get: your contractor has gone into liquidation, and the site is at a standstill. Tools down, workers gone, project incomplete. You’ve invested significant time and money into the project, and now everything is in limbo. So what happens next? Can you recover, carry on with the project, and protect your interests? The answer is: yes, but what you do in the early stages will make a big difference to the outcome.
On 5 September 2025 the Federal Court handed down its judgement in the Coles and Woolworths underpayment case. The decision dealt with two questions regarding award covered staff who are paid an annual salary: Can an employer use extra salary paid in one period to cover award shortfalls in another, and do employers still need to record overtime for award covered salaried staff?
A commercial lease is more than a document that gives you the right to occupy a space. It is a strategic tool that shapes the financial and operational relationship between landlord and tenant. Get it right, and it can support a stable and productive business relationship. Get it wrong, and you may face costly disputes, unexpected liabilities, and limited options to exit or adapt.
