Hi all, I have entered into a building contract for construction of new dwellings. During excavation of the basement the builder has damaged Telstra cables servicing my neighbour which were encroaching on my property. Telstra are seeking compensation for the damage and the builder is seeking to claim these costs back from me. The "Dial before you dig" report i obtained clearly labels the cables and warns not to excavate prior to speaking with Telstra. Is this clear negligence by the builder? Are there any situations where I should pay for this damage? The contract is a standard architect administered contract (ABIC) Thanks!
Which insurance risks was the builder was he required to insure? Eg contractors all risk? Public liability? Did you provide a copy of the DBYD? And give adequate opportunity for the builder to review? If you have discharged your responsibility then the builder would be liable for the damage. Regardless of the above, the builder should have done his own DBYD searches and exercised due care. Having a copy and actually reading it to identify services then taking the appropriate actions are two different things.
I don't know the answer to the insurance question, so will have to refer back to the contract. I had long forgotten about the DBYD report as I obtained it many years ago and I had been focused on a host of other issues. I did not see it as my responsibility as I have engaged in contracts with professional builders, engineers and architects. I would have thought DBYD was lesson 1 at excavation school. If we extend the logic to other professional services we would be responsible for advising the surgeon where to cut, the lawyer what statutes to read, and the accountant how to add up correctly.
If architect administered contract ask the architect! As owner, you should be at arms length. Generally speaking - if the builder causes the damage the builder is responsible. The exception would be if you provided information to the builder that the builder relied upon (e.g. a plan showing the cables were in a different location), but that would be the exception
@drfuzzy - sounding more like the builder's problem not yours. The DBYD is well out of date (iirc 30 days validity). The builder should get one at commencement of the project or prior to excavating to remove any doubt (what if there was an easement for power or gas or fibre comms?).
it is the builder responsibility he is responsible for the site (not yourself). Secondly, stuff like that happens - his insurance should cover it.
Thanks for confirming this. Its a bit complicated as: * there was a sewer easement and the focus was on permissions relating to abolishing that. They might have dropped the ball with considering that other cabling may run alongside the sewer easement. * a subcontractor has already caused substantial damage which is part of an insurance claim and there may be a reluctance to claim a second time for more damage. Appreciate all the advice. I think the builder is otherwise professional and pleasant to deal with but I don't want to wear this cost.
The builder is already aware of the issue and has to pass this onto the contractors. Each claim is a separate issue and goes against the subby's insurance.