Extension of duty of care
37 Extension of duty of care
A person who carries out construction work has a duty to exercise reasonable care to avoid economic loss caused by defects—
in or related to a building for which the work is done, and
arising from the construction work.
The duty of care is owed to each owner of the land in relation to which the construction work is carried out and to each subsequent owner of the land.
A person to whom the duty of care is owed is entitled to damages for the breach of the duty as if the duty were a duty established by the common law.
The duty of care is owed to an owner whether or not the construction work was carried out—
under a contract or other arrangement entered into with the owner or another person, or
otherwise than under a contract or arrangement.
This Act’s bill:Explanatory memorandumSecond reading speech
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