The Court held that where a waffle slab suffered extensive edge heave due to the builder's use of permeable sandy fill contrary to AS 2870 requirements, the appropriate measure of damages was the cost of demolition and complete rebuilding rather than rectification of the existing structure. The rectification method proposed by the builder was rejected as unreasonable because it involved significant uncertainties — including unknown structural impacts on the slab, the unpredictable grout/resin injection process, likely non-compliance with AS 2870 differential movement limits, and the unavailability of warranties or insurance for the remediated structure. The Court also rejected the builder's contributory negligence defence, finding the homeowners could not have known of the slab's vulnerability and that edge heave would have occurred from rainfall alone given the defective construction.
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