Design and Building Practitioners Act 2020 (DBP Act) introduced new Statutory Duties and Obligations. Significant extended obligations on Builders and other persons who carry out construction works have a duty to exercise reasonable care to avoid economic loss caused by defects.

09/02/2026

The Nominated Supervisor of the Builder held to be liable to the Property Owner for significant damages for breach of the Statutory Duties and Obligations.

Ensure that you understand what is required to properly prepare your claim, case and evidence.

We refer to various articles over numerous years on our website including in relation to various building cases and recent changes.

In this article, we consider the question of a claim under the statutory warranties and obligations under section 37 of the DBP Act 2020.

The Design and Building Practitioners Act (DBP Act)

The statutory duty of care as referred to in Sections 36 to 41 of the DBP Act is now applicable.  In our brief Article 25 November 2025, we referred to various sections of the DBP Act.  In this article we refer to a recent case considering the Statutory Duty of persons under section 37 of the DBP Act.

Oxford (NSW) Pty Limited (the Builder) -v- KR Properties Global Pty Ltd and Anor (the Owners)

Brief Facts

1. On 12 November 2014 the Owners entered into a Contract to purchase land in Gerringong.
2. In October 2015 the Owners entered into a Contract with the Plaintiff, Oxford (NSW) Pty Limited (the Builder) and the Builder constructed a 6 units apartment building in Gerrigong.
3. Mr Pierre (known as Peter) Kazzi was the Sole Director and Shareholder and Nominated Supervisor of the Builder.
4. The Builder brought proceedings against the Owners and Guarantors to recover amounts claimed in 9 invoices that the Builder served on the Owners.  The Builder did not maintain its claim for 3 of those invoices. 
5. By way of cross claim, the Owners claimed contractual damages from the Builder relating to incomplete work and defective work and interest. 
6. The Owners also brought a claim against Mr Kazzi for damages under Section 37 of the DBP Act 2020 (NSW). 
7. Justice Stevenson in the Supreme Court of New South Wales, an experienced Judge has decided numerous critical cases involving obligations and rights under the Design and Building Practitioners Act. 
   
   Justice Stevenson heard the dispute between the Owners (on the one part) and the Builder and Mr Kazzi (on the other part).
   
   In his Decision 6 Apri1 2023 Justice Stevenson found:
   
   7.1      The Builder was not entitled to payment of any of the invoices claimed;
   
   7.2      The Owners established an entitlement to damages from the Builder; and
   
   7.3      The Owners failed to establish their claim against Mr Kazzi personally which was under Section 37 of the DBP Act. Accordingly, this part of the claim was dismissed.

In a further Decision 15 August 2023 (Oxford No 4), Justice Stevenson made final Orders including entering Judgment for the Owners against Mr Kazzi in the sum of $277,579.50 plus costs of the Cross Claim.

In this article, we consider the question of the claim under statutory warranties provided for in Section 37 of the DBP Act 2020.

Justice Stevenson decided that the Owners failed to establish their claim against Mr Kazzi personally under Section 37 of the DBP Act.  He considered numerous cases including cases in the Supreme Court of NSW that he had decided.

Justice Stevenson in his initial Decision 6 April 2023 when considering the Owners claim against Mr Kazzi under the DBP Act:

1.        Sets out Section 37(1) of DBP Act which provides:

           “(1)     A person who carried out construction work has a duty to exercise reasonable care to avoid economic loss caused by defects –

1. in or related to a building for which the work is done; and
2. arising from the construction work.”

2.        Sets out Section 36 of the DBP Act which defines “construction work” as including “building work” and “supervising, coordinating, project managing or otherwise have substantive control over the carrying out of” amongst other things, “building work.”

Mr Kazzi’s Appeal of Justice Stevenson’s Decision to the Court of Appeal Supreme Court of NSW

Mr Kazzi’s Appeal related to matters other than the Order that the Owners failed to establish their claim against Mr Kazzi under Section 37 of the DBP Act.

The Owners’ Cross Appeal

The Owners filed a cross-appeal in the Court of Appeal Supreme Court of NSW which sought judgment against Mr Kazzi in the sum of $918,545.46.  The Owners claimed that the primary Judge (amongst other matters), incorrectly rejected the Owners’ claim against Mr Kazzi for damages for breach of his statutory duty under s37 of the DBP Act in relation to defects referred to B2, B10 and a further 12 defects.

Specifically, the Owners took issue with his Honour’s finding that the Owners had not established that Mr Kazzi breached his statutory duty in relation to those defects (ground 2).

Justice Mitchelmore JA in the Court of Appeal Decision stated:

"It follows from the above that I consider that the Owners advanced a claim against Mr Kazzi that I have reached a different view to that of the primary Judge as to the merits of that claim. I consider that Mr Kazzi breached his statutory duty of care, as the nominated supervisor of works, by making decisions as to the progress and manner of the works that gave rise to the defects on which the Owners relied.”

The other 2 Judges of the Supreme Court of Appeal agreed to the Decision of Justice Mitchelmore JA.

The Court of Appeal allowed the Owners’ Cross Appeal and ordered that Order 3 of Justice Stevenson’s Decision be set aside and in lieu thereof, entered Judgment in favour of the Owners against Mr Kazzi in the sum of $918,545.46.

The outcome of the Decision of Justice Stevenson and the different opinion of the Court of Appeal on numerous matters, emphasises the need to properly consider and prepare the case, plead the case and establish the elements required to be successful in the case.

The above relates to the obligations under section 37 of the DBP Act 2020 and equally important is the requirement to bring and defend a claim.

If you are involved in a possible dispute in relation to the issues that could arise in relation to Statutory Duties and Obligations of a Builder, we recommend that you make contact and seek our advice as early as possible. 

Do not delay; contact our experienced Building and Construction Lawyers at Watson & Watson by contacting Richard Watson who has been since 1995, an Accredited Specialist by the Law Society of New South Wales in Commercial Litigation in the stream of building and construction or his Personal Assistant, Shereen Da Gloria to discuss your very important matter.

The above in our view, is not based on the particular factual matters that apply in any particular case; and it is critical that one considers the factual matters and the law that applies to your circumstances. The above is not to be taken as legal advice to be relied upon, without first contacting Richard Watson as referred to above.

This is only a preliminary view and is not to be taken as legal advice without first contacting Watson & Watson Lawyers on 9221 6011.