DSU Case Law Paper


This is a must read for any construction broker, underwriter or claims professional dealing with DSU

A decision was handed down in the Supreme Court of NSW in 2017. It has some interesting findings relating to construction business interruption (most commonly known as a DSU – Delay in Start-Up –but also referred to as ALOP – Advanced Loss of Profits, and ACL – Advance Consequential Loss).

In this instance it was called a ‘Dept Servicing Standing Charges Insurance Policy’ (DSSC). For all intents and purposes, it is structured in the same manner as a typical DSU policy.

A full link to the document can be found here:

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Cape Byron Power I Pty Ltd v HSB Engineering Insurance Ltd – NSW Caselaw

There are many interesting findings and comments made by the judge; including the following:

  • Cyclical nature of policy definitions
  • Hypothetical aspect of claims
  • Evidence for construction projects well finished
  • How to actually calculate the delay
  • Proving concurrent delays
  • Admissibility of evidence
  • The distinction made between separate sites
  • Testing and commissioning


Contact Mirabelle to find out more!