Boulus Constructions Pty Ltd v Warrumbungle Shire Council (No 2) [2022] NSWSC 1368

When the Design and Building Practitioners Act 2020 (NSW) (DBP Act) came into effect, section 37 imposed a new duty on building practitioners and persons who carry out construction work to exercise reasonable care to avoid economic loss to building owners, including subsequent owners.

The scope of the duty continues to expand in the wake of several judgments. The latest, Boulus, confirms that the new duty applies to directors and employees of building companies.

Partners Robert Finnigan and Dean Pinto and senior associate Aaron Bolton explain why this decision raises issues for professional indemnity, management liability and D&O insurers that have policies that could, in certain circumstances, respond to section 37 claims against directors.