Many directors assume that if their enterprise fails, their personal assets will stay safely behind the corporate veil – but the reality is very different. When a construction company collapses, its directors can find themselves facing legal actions, financial liabilities, and professional ruin.
In this article we discuss the two main JV structures used in construction and the key issues that should be addressed when forming either model. The structure selected will shape how the relationship operates, how risks are managed and how the project is ultimately delivered.
The construction cases handed down in 2025 reinforced a theme that many in the industry already understand in theory, but still get caught out by in practice: process and precision matter. Whether it is the way payment schedules are prepared, or how contracts are formed, the courts have shown little tolerance for shortcuts.
2025 brought important legislative shifts across Australia’s east coast construction industry in Queensland, New South Wales, and Victoria. From trust account requirements and contract timeframes to procurement policies, these changes aim to improve fairness and efficiency.
Major construction projects often bring multiple companies together to tackle large-scale work. One common solution is the joint venture (JV): an arrangement where two or more parties combine their resources and expertise to deliver a specific project, sharing in the profits (and losses).
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.
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.
