Built Environment Law and Ethics 16467 - Jojo Babbit Case Study - Law Assignment Help

Assignment Task:

Jojo Babbit was a builder. He was engaged by Sahara Joffy to build a combined retail and residential strata complex on land which SJ owned at Fairfield in Sydney. The complex was called ‘Sahara Dreaming’. The complex was to consist of a combination of retail shops, privately owned residential units as well as serviced apartments to be operated by a purchaser of those particular lots. The lots earmarked for sale as serviced apartments were allocated on the strata plan as lots 1-10. Lots 11-50 consisted of the private residences and lots 51-70 comprised the lots allocated to retail shops. The development was built under a design and construction contract made in November 2017 between JB (as builder) and SJ (as the original owner and developer of the land). 

When JB decided to undertake the project with SJ he only had limited experience in building and construction. JB had only ever undertaken the development of free-standing, small residential dwellings. These projects were limited in their scope and value, with no project involving anything other than basic home building contracts. No home that he had developed ever exceeded a contract price of AU $1 million. In contrast, Sahara Dreaming was a multi-million- dollar development with both residential and retail spaces and a total contract price of over AU $78 million. The buildings for Sahara Dreaming were all completed by JB in September 2018. The entire  complex was then purchased from SJ by Daimaru Pty Ltd for a total of AU $112million in  December 2018. The following month, the strata corporation for Sahara Dreaming was registered under the relevant NSW strata schemes registration legislation.  In April 2019, Vega, the Managing Agent of Sahara Dreaming, noticed a number of problems with many of the lots in the complex. Many had suffered severe damage from water penetration issues and there were other major structural defects in approximately 82% of the lots in the complex. The estimated bill to repair the multitude of problems caused by the defective works undertaken by JB is approximately AU $30 million. Daimaru do not know what to do. Without the repairs being undertaken, the lots will not be able to be sold by them. They estimate that they have lost approximately AU $150 million in sales as a result. 

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