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Builders liability

Discussion in 'Renovation & Home Improvement' started by redflag, 2nd Dec, 2015.

  1. redflag

    redflag Member

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    doing some works to my property in QLD.

    My question is if the work my licensed builder is doing on my property causes damage to the neighbors property, what is the legal process.

    Does neighbour make claim against me, then I the builder. Do I have liability??

    Thx.
     
  2. Xenia

    Xenia Adelaide Property Manager Business Member

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    This is the reason that builders need to be licensed. They need a license to have professional indemnity insurance to cover incidences like this.
     
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  3. redflag

    redflag Member

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    Thanks,

    But what is the process. does the neighbour claim against me, then I make claim against builder??
    Or do I just ignore any threats from neighbour.
     
  4. OC1

    OC1 Well-Known Member

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    As the land owner you will always have legal liability whether a builder is involved or not.
     
  5. MTR

    MTR Well-Known Member Premium Member

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    This is correct Xenia
    I recently raised this issue on this forum (do a search could be SS) and I also spoke to my builder with regards to my 3 villa development in Perth

    He advised me that neighbours should contact him if there are any issues as he is the registered builder and liable for damage caused in the process of building. There was brick paving damage to the neighbouring property which the builder sorted and also some other minor issues.
    Insurance is compulsory.

    MTR
     
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  6. Brian84

    Brian84 Well-Known Member

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    Your builder should have public liability insurance. Your neighbour needs to contact your builder regarding the matter.
     
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  7. Scott No Mates

    Scott No Mates Well-Known Member

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    No, public liablity insurance covers this matter.

    PL Insurance is not compulsory, it is good business practice. Home owners warranty insurance is required for projects over $25k for builders in the residential construction industry.
     
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  8. OC1

    OC1 Well-Known Member

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    Correct. The amount is less in Vic too.
     
  9. MTR

    MTR Well-Known Member Premium Member

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    Interesting, can only talk from my experience and my scenario and good reason why you should ask whether you builder has insurance makes sense. Otherwise leaving yourself wide open
     
  10. Scott No Mates

    Scott No Mates Well-Known Member

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    Contractors also take out CAR (contractor's all risk) covers works in progress etc, workers comp and may also take out additional cover over bad debts.
     
  11. Scott No Mates

    Scott No Mates Well-Known Member

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    Until recently it was for all contracts over $13k