Subbies suck it up again? Stanley Group collapse leads to calls for subbie protection
On 5 September 2019, Auckland and Waikato-based Stanley Group/Tallwood became the latest in a long line of construction companies to go to the wall. Initial estimates put the amount owed to creditors at $5 million, with individual subcontractors reportedly owed up to $600,000. Stanley Group’s projects included building homes for Housing New Zealand and a […]
Retention Money Revolution: New Zealand’s Construction Industry Braces for Game-Changing Amendments from 5 October 2023
Members of New Zealand’s construction industry should familiarise themselves with upcoming changes to the retention money regime in the Construction Contracts Act 2002 (CCA). Retention money refers to an amount withheld by a party to a construction contract (party A) from an amount payable to another party to the contract (party B) as security for […]
Make safe your retentions by injunction – a timely remedy when developers are in trouble
This article was written by our colleague and barrister Finn Collins of Lambton Chambers, with whom we work closely with on construction law matters and assisted us in obtaining a recent court injunction to secure retentions. It’s one thing to have the comfort of knowing your retentions are held on a statutory trust, [1] but who […]
Duty to Warn: When is a contractor is responsible for design choices made by an owner?
Introduction A duty to warn is when a party may be held liable for damage or loss caused to another where the party had an opportunity to warn the other of the issues and failed to do so. We are regularly asked by contractors whether they have any responsibility in situations like the following: A […]
Retentions Must Be Returned – The High Court Confirms
Retentions under a subcontract are held on trust by the head contractor for the benefit of the subcontractor. If retentions are withheld, contingent on anything other than the subcontractor’s performance, they must be released immediately, as this is considered void and unenforceable. In Stevensons Structural Engineers 1978 Ltd (in liq) v McMillan & Lockwood (PN) Ltd & […]
Contractual Risks in Construction Subcontracts – the 10 Red Flags
Gone are the days when a Subcontractor can simply put its contract in a drawer. And rely on its good relationship with a main contractor or developer. To ensure that a project runs smoothly, and it gets paid at the end. Today’s Subcontractor needs to understand its contractual obligations and manage them to avoid lengthy […]