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A DISCUSSION OF THE DECISION IN DUFFY KENNEDY PTY v GALILEO MIRANDA NOMINEE PTY [2020] NSWCA 25

“Further, the payment did not comprise interest accrued on the outstanding amount, which was the sum of $177.20. Following receipt of the payment, Duffy Kennedy issued two notices to Galileo, asserting its right to suspend works under section 16(2)(b) of the Act, for defaulting on the payment. Neither notice referenced the failure to pay interest on the overdue amount.”

Construction cranes at dusk with darkening sky

BUILDING WORK RECTIFICATION ORDER FOR DUFFY KENNEDY CONSTRUCTIONS PTY LTD

“Duffy Kennedy Constructions Pty Limited is being given the Building Work Rectification Order in relation to 707-711 Elizabeth Street, Waterloo, NSW 2017 (SP101747). Duffy Kennedy Constructions Pty Limited is required to cause building work to be carried out to remediate serious defects as set out below in this Order. Failure to comply with the requirements in this order is a criminal offence.”

THE CASE OF DUFFY KENNEDY PTY V GALILEO MIRANDA NOMINEE PTY LTD BUILDING AND CONSTRUCTION PROJECT DISPUTE

“The Court went on to establish that in commercial contracts between parties, a business-like approach must be taken to the behaviour of the parties. The Court made specific reference to the fact that the decision to suspend the works on the basis of a failure to pay $177.20 was, on an objective assessment of the circumstances disproportionate and therefore unreasonable.”

Construction worker in orange uniform and green helmet walking on rebar grid with construction tools and materials on a concrete surface.

WHEN NEAR ENOUGH JUST ISN’T GOOD ENOUGH - THE RETURN OF SECURITY PRIOR TO COMPLETION

“In April 2017, Galileo Miranda Nominee Pty Ltd the Principal entered into a $66 million design and construction contract with Duffy Kennedy Pty Ltd the Contractor, for a residential multi-tower development, consisting of 197 units, at Miranda in Sydney. Duffy failed to meet the February 2019 date for practical completion and Galileo levied liquidated damages in respect of the delay”

Close-up of a cracked concrete wall texture with visible lines and uneven surface.

‘SERIOUS DEFECTS, CRACKS’ UNCOVERED AT WATERLOO APARTMENT DEVELOPMENT

“A recently completed Sydney development has been ordered to carry out rectification works after an inspection by the state’s building watchdog is said to have uncovered more than 40 defects at the site. Multiple alleged defects related to waterproofing were identified by Fair Trading including “large volumes of ponding water” in roof areas and drainage outlets that restricted the flow of water”.

Construction workers on bamboo scaffolding

PALISADE MIRANDA: GALILEO AND DUFFY KENNEDY IN STOUSH OVER DEFECTS

“It was billed as “luxurious resort-style living”. But the developers and builders are now in a stoush after residents were left with wonky floors, missing taps, leaking windows, and a host of other defects. As more defects came to light, Galileo filed a complaint against Duffy Kennedy with the Office of Fair Trading and the Building Commissioner”