Is industry facing a tidal wave of litigation?
As the industry attempts to digest what stage 4 lockdown restrictions will mean, fears are growing around litigation linked to project delays. There is no doubt that there will be fervent reviews of contracts already underway along with updating insurance policies there is however some good news. The AFR today quotes Contractors Debt Recovery GM Anthony Igra who notes that the Building and Construction Industry Security of Payment Act (Victoria) 2002 actually prevents claims for liquidated damages where the cause is a change in regulatory requirements. Regardless, there will no doubt be a wave of cases heading to court to test this legislation.
**Please note that this does not represent legal advice and independent counsel should be sought for readers.