The Case in Brief

In May 2018, the owner engaged the builder to design and construct a house on his property, which was located across the road from a lagoon. The contract required the builder to provide hydraulic stormwater details from an engineering firm and to construct a hydraulic stormwater drainage system in accordance with those details. The builder obtained conceptual plans for the stormwater system from an engineering firm, which were reviewed by the local council when granting the construction certificate for the property.

In February 2020, the house was damaged by flooding during a major storm event. The owner initiated legal proceedings against the builder, claiming that the work related to the stormwater system was not carried out with due care and skill. The owner sought an order for rectification of the stormwater system or alternatively, compensation for the builder’s breach of the statutory warranties. The builder argued that it could avoid responsibility for the insufficiency of the stormwater system because the local council approved the stormwater management plan.

Key Takeaways

  1. Approval of plans by a local authority does not absolve a builder from responsibility to ensure adequate provision is made for the dispersal of stormwater.
  2. The rectification of defective work by the responsible party is the preferred outcome.
  3. The appropriate remedy for defective building work is to place the owner as far as possible in the position they would have been in had the builder fulfilled its contractual obligations.

What Homeowners Can Do​

Conduct Proper Research and Due Diligence

Homeowners should conduct proper research and due diligence on their builders and contractors before engaging them. This includes checking their credentials, licenses, and past work. Additionally, it is essential to ensure that the contract includes a provision for the provision of stormwater management and that the builder is responsible for ensuring that the system is designed and constructed in accordance with engineering details.

Engage Expert Consultants

Engage expert consultants to conduct an independent assessment of the building design and construction plans to ensure that they comply with engineering details, industry standards, and best practices.

Seek Legal Assistance

Owners should engage a construciton lawyer to review the residential building contract and get advice prior to signing their contract. This will allow owners to be informed of their risks that they need to manage. But importantly for owners to have a relationhip with a construction lawyer who they can turn to the moment an issue arises and perhaps prevent a legal dispute. If a homeowner experiences defects in their building, they should seek legal assistance to enforce their rights and to obtain the appropriate remedies for any defective work.

Conclusion

The O’Rourke v Beechwood Homes case highlights the importance of proper stormwater management in residential building construction. Homeowners should take all necessary precautions to ensure that their builders and contractors comply with engineering details and best practices. In cases where defective work is identified, homeowners should seek legal assistance to enforce their rights and to obtain the appropriate remedies. By taking these steps, homeowners can protect themselves from the risks and consequences of defective building work.