Construction Law Update December 2018 to February 2019

100 minutes  05.03.2019 Richard Crawford

This edition includes a wrap of the balance of notable security of payment decisions of 2018 and our analysis of policy and case developments of early 2019.

In February, the NSW Government foreshadowed reforms to the building industry in response to the Shergold Weir report. The Queensland court handed down a costly reminder of complying strictly with conditions attached to bank guarantees. In South Australia, there is now guidance on the nature of a ‘statewide shutdown’ for SOPA. Across Australia, courts continued their consistent application to SOPA cases of the ‘pay first, argue later’ concept.

Your December 2018-February 2019 edition is now available.

You can also access past editions.

Legislative update

New South Wales

  • NSW Government crackdown on the building industry  |  Response to the findings of the 2018 Shergold Weir report

In the Australian courts

Australian Capital Territory

  • 'Pay first and argue later' concept underpinning SOPA demonstrated yet again!  |  Canberra Drilling Rigs Pty Ltd v Haides Pty Ltd [2018] ACTSC 282

New South Wales

  • The right to an offsetting claim against valid payment claims  |  Grandview Ausbuilder Pty Ltd v Budget Demolitions Pty Ltd [2018] NSWSC1647
  • No jurisdictional error if an adjudicator misconstrues contract  |  Icon Co (NSW) Pty Ltd v Australia Avenue Developments [2018] NSWCA 339

Northern Territory

  • It pays to be prepared! Adjudicators need not ask for submissions for issues that are not a surprise to the parties  |  JKC Australia LNG Pty Ltd v Inpex Operations Australia Pty Ltd & Ors [2018] NTCA 6
  • When is there a 'conflict of interest' where an adjudicator is appointed to determine multiple payment disputes simultaneously  |  Northern Territory of Australia v Woodhill and Sons Pty Ltd [2018] NTSC 30

Queensland

  • Costs awarded in unsuccessful application for judicial review of a QBCC decision  |  Bourne v Queensland Building and Construction Commission (No 2) [2018] QSC 311
  • Unlicensed builder successfully claims reasonable remuneration in excess of the contract price for construction of a chapel  |  Chapel of Angels Pty Ltd v Hennessy Builder Pty Ltd & Anor [2018] QDC 218
  • Rendering a subcontractors' charge void – a lot tougher than expected  |  Civex Pty Ltd v Fredon (Qld) Pty Ltd [2018] QDC 208
  • CMC and WICET bowled over in the Queensland Court of Appeal  |  Civil Mining & Construction Pty Ltd v Wiggins Island Coal Export Terminal Pty Limited; Wiggins Island Coal Export Terminal Pty Limited v Civil Mining & Construction Pty Ltd [2019] QCA 12
  • Court-appointed expert to provide further opinion despite plaintiffs' additional expert evidence  |  Fricke & Anor v WH Frier Building Contractors Pty Ltd & Ors [2019] QSC 6
  • Charges discharge liability in an adjudication  |  Livingstone Shire Council v EarthTEC Pty Ltd and Ors [2018] QSC 271
  • Adjudication process to proceed because subcontractor's progress payment tied to value of the work and not profit share arrangement  |  Monadelphous Engineering Pty Ltd v Acciona Agua Australia Pty Ltd & Anor [2018] QSC 310
  • Court to ensure the Industry Payments Act is not circumvented when exercising discretion to order payment into court of disputed adjudication amount  |  Runaway Bay Investments Pty Ltd as trustee for Runaway Bay Investments Unit Trust v GCB Constructions Pty Ltd and Ors [2018] QSC 292
  • Santos loses ability to call on $55m bank guarantee – strict compliance a must  |  Santos Limited v BNP Paribas [2019] QCA 11
  • Feelings are not 'dealings' which engage the duty of good faith  |  Sentinel Robina Office Pty Ltd v Clarence Property Corporation Ltd [2018] QCA 314
  • Disgruntled property owners lose out in a protracted claim against their local council  |  Woolnough & Anor v Isaac Regional Council [2019] QSC 17

South Australia

  • SA court issues SOPA guidance on the nature of a 'statewide shutdown'  |  McMahon Services Australia P/L v John Holland P/L [2018] SADC 134

Victoria

  • Summary judgment on a SOPA claim: What is the Standard of Proof?  |  Best Fab Pty Ltd v Australian High Bay Installations Pty Ltd [2018] VCC 1053
  • Respondent will not be wound up where 'genuine dispute' exists  |  Cat Protection Society v Arvio [2018] VSC 757
  • Stay of proceedings will be automatically granted where mutual debts are owed in winding up proceedings  |  Coal Projects Pty Ltd v Maicome Pty Ltd [2018] VCC 1730
  • 'Paid' means in the hands of, under the control of, and immediately accessible  |  Cornonero Pty Ltd v Bright Moon Buddhist Society & Anor [2018] VSC 737
  • Pay now, argue later – a contractor's rights to prompt recovery under the Security of Payment Act upheld  |  Geotech Pty Ltd v Broadspectrum (Australia) Pty Ltd & Anor [2018] VCC 1047
  • Progress payment adjudications – better late than never  |  Ian Street Developer v Arrow International [2018] VSC 294
  • Successful defence of summary judgment application where payment schedule not provided  |  John Beever (Aust) Pty Ltd v Roads Corporation [2018] VSC 635
  • 'Better late than never' – When adjudication determinations are made out of time  |  PHHH Investments No 2 Pty Ltd v United Commercial Projects Pty Ltd [2018] VSC 15
  • Respondent will not be wound up where 'genuine dispute' exists  |  Re Advanced Controls Pty Ltd [2018] VSC 639
  • Excluded amounts – when a claim for payment is a claim to 'recoup' liquidated damages  |  Shape Australia v The Nuance Group [2018] VSC 808
  • The Victorian Security of Payment Act applies to prefabrication work carried out in Victoria for erection in Tasmania  |  South City Plaster Pty Ltd v Modscape Pty Ltd [2018] VCC 1576
  • Does a reference date for final payment arise following termination of a contract?  |  Vanguard Development Group Pty Ltd v Promax Building Developments Pty Ltd & Anor [2018] VSC 386

Western Australia

  • In itself, being successful in an adjudication determination isn't proof that a 'construction contract' exists for SOPA purposes  |  Easy Stay Mining Accommodation Pty Ltd v Grounded Construction Group Pty Ltd [2018] FCA 519

 

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