Australian Construction Dispute Resolution Newsletter - October 2016

Welcome to this issue of Herbert Smith Freehills’ Australian Construction Dispute Resolution Newsletter.

This newsletter updates you on legal developments relevant to your industry by featuring Australian court decisions and legislative developments of particular interest.

In this issue, we look at:

• a recent decision of the High Court of Australia considering whether a bank fee was a penalty and unenforceable and reiterating the significant hurdles a party will face in order to prove that a provision, such as one providing for liquidated damages payable for delayed completion of construction work, is a penalty.
• two developments which provide welcome guidance towards a more settled approach to the often complex issue of concurrent delay.
• the long awaited Evans Report into the operation and effectiveness of the Construction Contracts Act 2004 (WA) (Act). The Report makes 28 recommendations which include proposed amendments to the Act which, if adopted, will have a significant impact on both principals and contractors.

We trust that you will enjoy this issue of the Australian Construction Dispute Resolution Newsletter.