The Premier of Victoria, Daniel Andrews, announced today that the construction industry will operate in a scaled-back manner for 6 weeks commencing 11:59 pm on Friday 7 August, 2020. The construction industry will be split into 3 categories:
- Infrastructure with Government involvement;
- Large scaled commercial and residential infrastructure above 3 storeys; and
- Domestic building and small scale construction.
The first category of works has already had a scaled-back approach applied and will now be reduced to the practical minimum. The second category of works must reduce its on site work force to the practical minimum for safety purposes and cannot have more than 25% of the normal workforce on site. For the third category, it will be unlawful to have more than 5 people on site.
The Premier has advised there will be further announcements throughout the week which will clarify those categories and the requirements, which we will update you on as they occur. This will likely include further safety and health measures that must be implemented on sites.
We strongly recommend sending notices of delay, extension of time claims and change in legislative requirement claims to ensure any time bars under your contracts are met so that your rights are reserved under each contract, which will provide a springboard for negotiation if required (unless an arrangement can be reached before time bars expire, which may be difficult).
If you are about to enter into new construction contracts, it will be necessary to request that you be entitled to an extension of time for qualifying causes of delay relevant to the announcement today (to be clarified shortly including effect on manufacturing).
To view the guide to Stage 4 industry restrictions, click here.
More information
For more information, or assistance in relation to any of the above, please contact Darren Cain, Principal Lawywer and Head of Construction and Infrastructure, on (03) 8600 8835 or dcain@kcllaw.com.au, Damien Simonetti, Principal Lawyer, on (03) 8600 0708 or dsimonetti@kcllaw.com.au or Jaimi Johanson, Lawyer, on (03) 8600 8839 or jjohanson@kcllaw.com.au.
Authors
This Construction and Infrastructure update was authored by Jaimi Johanson, Lawyer.
Note: This update is a guide only and is not intended to constitute legal advice.