Hartley v McRae

The case of Hartley v McRae involved a dispute between Janette and Terry Hartley, the homeowners, and Greg McRae, a builder, under Section 48MA of the Home Building Act 1989. The primary issue was the quality of the work completed by McRae under a building contract, specifically concerning defects and undocumented variations in the construction of the Hartley's home. The case was heard and decided by the Queensland Civil and Administrative Tribunal.

The key legal issues revolved around the obligations of the builder to complete the work in a good and workmanlike manner, the interpretation of the term 'prime cost items' under the Act, and the validity of undocumented variations. The Tribunal had to determine whether the builder had met his contractual obligations, the extent to which the homeowners were entitled to compensation for defects, and whether the undocumented variations were enforceable.

The Tribunal concluded that the builder had not completed the work to the required standard, resulting in defects that necessitated rectification. It found that some of the prime cost items were not properly installed and that the undocumented variations were not adequately documented to be enforceable. The Tribunal ordered the builder to pay the homeowners $11,345.99 for the defective work, while the homeowners were ordered to pay the builder $13,841.32 for work completed. Additionally, the Tribunal mandated that consent work orders be filed within 21 days to outline the rectification work required and its timelines. If the parties failed to comply, either party could seek a re-listing of the proceedings.

The final orders included specific timelines for filing consent work orders, payment of sums between the parties, and procedures for any subsequent costs applications. The Tribunal also granted the parties leave to bring an application for costs, with detailed procedures for lodging and responding to such applications, and an option for the parties to agree on determining the costs application on the basis of written submissions and documents without a hearing.