Written by In The Owners – Strata Plan 94800 v Aushome Construction Pty Ltd & Anor [2025] NSWDC 143, the District Court of NSW clarified an important issue for homeowners: whether the Court can order a builder to carry out rectification work under the Home Building Act 1989 (NSW). The case involved major defects in a residential apartment building. The owners corporation first brought a warranty claim in NCAT, but the matter was later transferred to the District Court. The owners asked the Court to either award damages or issue a “work order” requiring the builder to fix the defects. The builder argued the Court didn’t have power to issue such an order, then later argued a work order was the only appropriate outcome.
The Court ultimately ordered damages, finding it would be inappropriate to require the builder to return to rectify the defects given the severity of the issues and the breakdown of trust. However, the Court noted that it is arguable that it has power to issue a work order under section 48O of the Act when hearing a matter that would otherwise fall within NCAT’s jurisdiction. While it didn’t need to decide the issue, the Court pointed out that the Act encourages fixing defects over paying damages, and that the District Court shares jurisdiction with NCAT for claims under $500,000. This decision leaves opportunity for rectification orders to be made in the District Court.