The previous uncertainty surrounding the length of time in which home owners could bring a claim against builders has now been clarified by the Supreme Court of Victoria.

The Victorian Civil and Administrative Tribunal (VCAT) has long adopted the position that the ten year period for which an action can brought against a builder as stated in Section 134 (S134) of the Building Act 1993 (the Act), is intended to replace the period of six years provided by the Limitations of Actions Act 1958. This position has not been without its critics.

The recent County Court decision of Brirek Industries –v- McKenzie Group Consulting, adopts the alternative position. That is, any cause of action will be statute barred upon the expiration of the six year period under the Limitations of Actions Act 1958.

If you are involved in the supply of materials, whether plant, equipment or other building materials, whether by way of sale or hire, in the building and construction industry you should be aware of the operation and effect of the Personal Property Securities Act 2009 (Cth) (PPSA), which can help protect your interests in the event of the insolvency of the party to whom you supply materials.

Suppliers now have registerable security interests in the personal property that they supply to customers on a retention of title basis. Supply of materials on a ‘retention of title’ basis means that the seller retains legal ownership in the goods (even after delivery to the purchaser) until payment in full is received.

In tough economic times, maintaining cash flow to your business can become more difficult. In this article, we explore ways in which cash flow can be maintained, with a particular focus on the building industry.