Balance-Sheet Risks for Head Contractors

Construction companies face an increasingly complex landscape of contractual, and statutory liabilities. The “balance-sheet” is exposed to obligations under legislation such as the Design and Building Practitioners Act 2020 (DBP Act), the Property Developers Act 2024 (‘PDA’), Environmental Laws, and the Building Products (Safety) Act 2017 (NSW). This Seminar will highlight how legislative compliance is intrinsically linked to achieving contractual standards such as “fitness for purpose,” and why failures in design, product selection, or supply chain governance can trigger significant long-tail liabilities.

First, the Seminar will identify the typical, yet onerous “design obligations” and “warranties” assumed by Head Contractors under D&C engagements.

Secondly, a discussion will be had as to the statutory liabilities that arise under the DBP Act and the PDA.

Finally, the Seminar will touch on insurances and the requirements posed by the definitions of “Business” and/or “Professional Services” in Professional Indemnity insurance policies. Noting that insurance renewals are approaching, the key lesson for participants is to be alert to insurance policy endorsements for loss of proportionate liability protection, agreed contractual indemnities and implied warranties (as to fitness for purpose and due care/skill). Without these endorsements, arguably insurance cover is ineffective and lost.

CPD: 1 point

Disclaimer: The information presented in this webinar is accurate to the best of the speaker’s knowledge at the time of recording. AIQS does not independently verify the content and accepts no responsibility for any errors, omissions, or changes that may occur after publication. Viewers are encouraged to exercise their own judgement and seek professional advice where appropriate.