The importance of providing reasons when challenging a payment claim has been reinforced by a recent Supreme Court of Queensland decision. The decision – Insite Construction Services Pty Ltd v Daniels Civil Pty Ltd & Anor [2023] QSC 33 –  considered an adjudication decision where the adjudicator awarded the full amount claimed in a payment claim without carrying out his own valuation. The case highlights the importance for respondents to include detailed reasons in payment schedules to avoid implied admissions in relation to the valuation of amounts claimed. If a respondent does not a ..read more

Christmas is just around the corner, and as we approach the end of the year, it is important to remember the timing requirements for payment claims and payment schedules under the relevant security of payment (SOP) legislation for each State and Territory. Here are our tips to ensure that presents are your only surprise this festive season. Know when your payment schedule must be served Click here to view the SOP Comparison table and calendar that sets out the non-business days for each State and Territory.  This table will help you to time your payment schedules correctly in each jurisdi ..read more

The holiday season is just around the corner, and as we approach the end of the year, it is important to remember the timing requirements for payment claims and payment schedules under the relevant security of payment (SOP) legislation for each State and Territory. Here are our tips to ensure that presents are your only surprise this festive season. Know when your payment schedule must be served Click here to view the SOP Comparison table and calendar that sets out the non-business days for each State and Territory.  This table will help you to time your payment schedules correctly i ..read more

On 1 July 2021, the Particulars for Regulated Design Order 2021 came into effect in NSW.  This requires regulated designs for ground anchors to include evidence of a registered easement for the ground anchors.  Previously, developers and contractors have frequently relied on simple contractual licences rather than registered easements for such rights.  They need to prepare for this new requirement to avoid delays for residential development projects. The new Order specifies additional conditions for a ‘regulated design’ under section 5(3) of the Design and Building Practitioners ..read more

Construction contracts commonly provide that a builder is to rectify defects and include a defects liability period for the benefit of the builder. The consequences of denying the builder the opportunity to rectify defects were evidenced in the recent Supreme Court of South Australia Court of Appeal decision of Bedrock Construction and Development Pty Ltd v Crea [2021] SASCA 66. The owner of Antica Pizzeria e Cucina Restaurant on Morphett Street in Adelaide engaged the builder to perform renovation and fitout works under a standard form ABIC SW-2008 (Simple Works) contract with an interior des ..read more

New security of payment legislation will affect some practices of principals, contractors and subcontractors that have become market norms in the construction sector. Many market participants will need to change their standard contracts and contract administration processes in response to the new law. The Building and Construction Industry (Security of Payment) Act 2021 (WA) (SOP Act) received Royal Assent on 25 June 2021. The SOP Act replaces the Construction Contracts Act 2004 (WA) (CCA) with respect to construction contracts entered after the SOP Act commences operation. The operative parts ..read more

In March this year we reported on the Court’s approach to dealing with the situation where there are two potential payment schedules in play under the Building Industry Fairness (Security of Payment) Act 2017 (Qld) (BIF Act). The Queensland Court of Appeal has now overturned this decision of the Supreme Court.  The Court of Appeal’s decision turned on a contractual drafting point, and the circumstances giving rise to this litigation can be overcome with appropriate drafting that clearly regulates which documents are intended to be documents given under the BIF Act. Background RHG Construc ..read more

In our construction law blog last year, we alerted you to the Design and Building Practitioners Act 2020 (NSW) (‘the DBPA‘), which subjects New South Wales contractors, designers and engineers to a new regulatory framework that introduced the concept of a ‘regulated design’ as well as a retrospective duty of care. When the DBPA was enacted last year, it contained over a hundred references to ‘regulations’, which at that time did not exist, leaving many issues unclear. In mid-April this year, the Design and Building Practitioners Regulation 2021 (NSW) (‘the DBPR‘) was introduced and is due to c ..read more

A recent decision in the Supreme Court of Western Australia has continued the trend of the Courts in applying the generally accepted meaning of ‘due and payable’ contained in construction contracts. Background In the case of Weston v Perkins (WA) Pty Ltd [2021] WASC 84, Mr Maxwell Weston was appointed as Superintendent under a building contract (Contract) between Austpro Management Services Group Pty Ltd (Austpro) (as principal) and Perkins (WA) Pty Ltd (Perkins) (as contractor). In that capacity, Mr Weston took custody of a bond issued by Perkins as post-completion security under the Contract ..read more

Thomson Geer’s Brisbane Construction Team recently acted for the successful party in a Supreme Court of Queensland proceeding which confirmed that a payment claim containing claims under two separate contracts will be void under the Building Industry Fairness (Security of Payment) Act 2017 (Qld) (BIF Act). The decision of Ausipile Pty Ltd v Bothar Boring and Tunnelling (Australia) Pty Ltd [2021] QSC 39 related to an originating application for summary judgment filed by Ausipile Pty Ltd (Ausipile) against our client Bothar Boring and Tunnelling (Australia) Pty Ltd (Bothar) to recover the amount ..read more