On 24 August 2023, the County Court of Victoria handed down its decision in Owners Corporation I Plan No PS 707553K and Ors v Shangri-La Construction Pty Ltd (ACN 130 534 244) and Anor [2023] VCC 1473.

Following the well documented spike in mid and post-pandemic costs, driven largely by inflation and global supply shortages, many industries have seen the cost of doing business increase significantly. For many of these industries, in order to remain viable, these additional costs have been (at least in part) handed on to the consumer. Unfortunately for those in the domestic building industry in Victoria, this option is not always available.

Purchasing or building a new home is often said to be the largest financial commitment an individual or a couple will make in their lifetime. People will take on substantial mortgages in order to build their dream homes or investment properties. Therefore, it is extremely important that you ensure the legal goalposts are set from the beginning and understood by all parties, before signing on the dotted line.

The National Construction Code 2022 (NCC 2022) is undergoing some significant changes by introducing new requirements that will alter the construction of most houses and apartments. This will likely result in additional costs to home owners.

It is undeniable that the COVID-19 pandemic has presented unique and challenging issues for Australian businesses, causing long-term disruption to business. Adding further complexity is that, historically, the insurance industry would not provide relief to businesses affected by a pandemic.