Baker Merz Construction Lawyers
Expert construction law services. Contract disputes, adjudication, claims & litigation. Free consultation.
03 8639 9930Quick Enquiry
Contract Review & Drafting
MBA Victoria, HIA Victoria, AS4000, NEC4 & FIDIC contracts.
VCAT Representation
Domestic building disputes, defects claims & termination matters.
Security of Payment
Payment claims & adjudication under the Victorian SOP Act 2002.
Building Dispute Resolution
Defects, variations, progress payments & practical completion.
Claims Preparation
Variation, EOT, delay & disruption claims with CPM analysis.
Construction Litigation
County Court, Supreme Court & appellate representation.
Delay & Disruption
Prolongation, acceleration & productivity loss quantification.
Domestic Building Contracts
Domestic Building Contracts Act 1995 advice & disputes.
Melbourne's Construction Market
Melbourne's construction industry is Australia's second-largest market, generating approximately $21.6 billion in economic activity annually. The state's ambitious $100 billion Big Build program has transformed the project pipeline. The Metro Tunnel project, with five new underground stations, represents one of the most significant rail investments in the city's history. The West Gate Tunnel provides a critical alternative river crossing. The Level Crossing Removal Project continues to eliminate dangerous intersections across the metropolitan rail network.
The Victorian market has several distinctive characteristics. The strong union presence creates a unique industrial relations environment. Victoria's complex planning regime, governed by the Planning and Environment Act 1987, adds regulatory oversight. Construction costs in Victoria have risen by approximately 22% since 2021, and the state's construction insolvency rates increased by 28% in the 2023 financial year, making robust contract administration and specialist legal support essential.
Victorian Legislation We Work With
The Building Act 1993 is the cornerstone of Victoria's building regulatory system. The Domestic Building Contracts Act 1995 governs residential construction contracts, prescribing mandatory terms and dispute resolution procedures. The Building and Construction Industry Security of Payment Act 2002 provides a statutory mechanism for ensuring progress payments flow through the contractual chain. The Victorian Building Authority Act 2018 establishes the regulator for building practitioners and surveyors. The Building Regulations 2018 set out technical requirements including energy efficiency, fire safety, and accessibility.
Recent Case Studies — Melbourne
Metro Tunnel Station — Variation Claim $3.4M
A structural contractor on the Metro Tunnel project was facing a principal's refusal to recognise variations worth $3.4 million, arising from changed ground conditions encountered during station box excavation. The contract was an NEC4 Option A (priced contract with activity schedule), and the principal argued that the ground conditions were within the contractor's risk under the activity schedule pricing. Our engineer-lawyers reviewed the site investigation reports, the ground conditions actually encountered, and the NEC4 compensation event mechanism. We established that the ground conditions constituted a physical condition that an experienced contractor could not have reasonably foreseen, meeting the NEC4 compensation event criteria. We also demonstrated that the activity schedule rates were based on the site investigation data provided by the principal, which had significantly underestimated the rock hardness. We prepared a comprehensive compensation event notification and quotation, supported by geotechnical expert evidence and detailed programme analysis demonstrating the impact on the critical path. The project manager accepted the compensation event and approved payment of $3.1 million, with the remaining $300,000 resolved through a negotiated settlement of the final account.
Domestic Builder VCAT Defence — $850K Homeowner Claim
A Melbourne domestic builder was facing VCAT proceedings brought by a homeowner alleging defective construction of a $2.1 million custom home, with the homeowner claiming $850,000 in rectification costs and an order for the builder to pay for alternative accommodation during rectification. The homeowner's expert report identified 73 alleged defects, ranging from minor cosmetic issues to structural concerns about the foundation. Our engineer-lawyers reviewed every alleged defect against the contract documents, the Building Code of Australia, and the Australian Standards applicable at the time of construction. We engaged independent experts — a structural engineer, a building surveyor, and a quantity surveyor — to provide objective assessments. Our analysis established that 58 of the 73 alleged defects were either within acceptable tolerances, not defects at all, or attributable to the homeowner's own design changes after construction commenced. Of the remaining 15 items, we demonstrated that 11 were minor rectification items with a total value of $18,000. We represented the builder at VCAT, cross-examining the homeowner's expert and presenting our comprehensive evidence. The VCAT member ordered rectification of only 8 items at a cost of $12,400 — a 98.5% reduction from the $850,000 claimed.
Level Crossing Removal — Delay and Prolongation Claim
A rail contractor on the Level Crossing Removal Project was facing a principal's assertion that the contractor was not entitled to any extension of time for delays caused by utility relocations, with the principal claiming liquidated damages of $45,000 per day for 120 days of alleged culpable delay. The contractor's delay claim had been rejected by the superintendent on the basis that the contract's extension of time mechanism did not recognise utility relocation delays as qualifying causes. Our engineer-lawyers reviewed the contract, the programme records, and the actual delay events. We established that the utility relocations were directed by the principal and were not within the contractor's scope or control. We also identified that the superintendent had failed to assess the extension of time claim within the contract's required timeframe, and that the principal's own delay in issuing site access was a concurrent cause of delay. We prepared a detailed CPM delay analysis using Primavera P6, demonstrating that the utility relocations were on the critical path and that the principal's delay was the dominant cause. We commenced Supreme Court proceedings seeking declaratory relief and an injunction against the liquidated damages claim. The matter settled before trial with the principal agreeing to a 95-day extension of time and $2.1 million in prolongation costs.
Office Details
Address
Level 2, 140 William Street, Melbourne VIC 3000
Phone
03 8639 9930Hours
Mon–Fri 8:00am – 8:00pm
Areas We Serve Across Melbourne & Victoria
Melbourne CBD & Inner City
Southbank, Docklands, Carlton — high-density commercial and residential developments.
Eastern & South Eastern Suburbs
Box Hill, Camberwell, Ringwood, Dandenong, Frankston, Pakenham — residential and infrastructure growth corridors.
Western Suburbs
Footscray, Sunshine, Werribee — West Gate Tunnel completion and industrial development.
Regional Victoria
Geelong, Ballarat, Bendigo, Gippsland — major infrastructure and regional development initiatives.