NSW Supreme Court Strictly Applies 10-Year Building Defects Long-Stop

In Fortius Broadway No 1 Pty Ltd v Watpac (NSW) Pty Ltd (No 1) [2026] NSWSC 710, the NSW Supreme Court was required to determine whether the statutory 10-year cut-off for building actions also applied to contribution proceedings. The Court confirmed that claims brought under the Law Reform (Miscellaneous Provisions) Act 1946 (NSW) are subject to the limitation imposed by section 6.20 of the Environmental Planning and Assessment Act 1979 (NSW), and that the time limit cannot be revived or extended through the operation of section 74 of the Limitation Act 1969 (NSW). 

This particular dispute concerned alleged building defects at a development in Chippendale, which were under examination after a planter box detached from the building. The retail lot owner commenced proceedings against a number of parties engaged in the project.

Before the 10 year statutory time limit elapsed, the retail lot owner applied to amend its pleadings by alleging further defects and adding a statutory duty of care claim against the certifier under the Design and Building Practitioners Act 2020 (NSW).

The certifier resisted the application, contending that permitting the amendment at such a late stage would materially disadvantage its position. It argued that the long-stop had effectively prevented it from bringing contribution claims against other parties and that section 74 of the Limitation Act 1969 (NSW) could not extend the time limit.

The Court accepted the certifier’s position, finding that contribution claims arise from the same loss or damage associated with defective building work and therefore fall within the scope of section 6.20 of the EPA Act. The Court further determined that section 74 of the Limitation Act 1969 (NSW) could not operate to extend the 10-year long-stop period, as section 6.20 applies despite any other Act or law.

The decision confirms that the 10-year long-stop operates as a strict cut-off for claims connected with defective building work, including contribution claims. It highlights the importance for construction participants and insurers to identify potential claims early and take steps to preserve their rights before the expiry of the statutory period.