Enforcement of Sopa Judgment
Case Summary: McDonald v MAK Constructions and Building Services Pty Ltd [2024] NSWCA 63 Background: In early 2022, a residential building contract between Ms. McDonald (the owner) and MAK Constructions (the builder) was terminated due to breach. The builder sought payment for work done under the Security of Payment Act (SOPA), while the owner pursued […]
Lessons from Recent Construction Disputes
Dispute about Dry Hire Agreement We acted for a crane company (Owner) that was engaged by another crane company (Hirer) under a dry hire arrangement. The hire agreement continued for a number of years. A dispute arose about unpaid hire charges and damage to the crane. The Owner promptly recovered the crane but was unable […]
Exciting News for Subcontractors Needing to Recover Retention Money!
Hunters Green Retirement Living Pty Ltd v JG King Project Management Pty Ltd [2023] VSC 536 In a recent case delivered on 8 September 2023, the Supreme Court of Victoria examined whether claims by a contractor for the return of retention funds qualified as “payment claims” under the Act. JG King was to provide retention funds […]
Employers should be cautious when dismissing employees (even high income earners)!
Did you know a high earning employee can still make an unfair dismissal application if they are covered by an award or enterprise agreement and meet other eligibility criteria? Unfair dismissal is when an employee is unreasonably dismissed from their job. If employees think they have been unfairly dismissed they can apply to the Fair […]
New penalties for unfair contract terms in standard form contracts
There are important changes to laws about unfair contract terms in standard form contracts. These are important to know if you are a subcontractor who enters into standard form contracts with builders. Key points: The new laws will apply to standard form contracts from 10 November 2023. The news laws will stop a party from using […]
More ways to protect your business with security interests
The recent case of court case of AWE Perth Pty Ltd v Clough Projects Australia Pty Ltd shows that there are more ways to protect your business when entering into a construction contract. Key Points: Security interests are important to protect your rights under a contract Security interests can be over commercial property or intangible […]
Case summary: Insolvent companies can still claim debts through Security of Payments Legislation.
The recent decision in the case of Kennedy Civil Contracting Pty Ltd (Administrators Appointed) v Richard Crookes Construction Pty Ltd shows that companies can still claim for unpaid debts even if they are insolvent. This is case shows how powerful SOPA can be to claim debt. Even insolvent companies can be entitled to hundreds of thousands […]
The Importance of Deadlines for Issuing a Payment Schedule
The Queensland Court of Appeal’s recent decision in Allencon Pty Ltd v Palmgrove Holdings Pty Ltd trading as Carruthers Contracting [2023] QCA 6 highlights the importance of being aware of the deadlines for issuing a payment schedule Case Summary: Allencon Pty Ltd (Allencon) engaged Palmgrove Holdings Pty Ltd T/A Carruthers Contracting (Carruthers) as a subcontractor. […]
Breach of contract, misleading and deceptive conduct, director’s personal liability
CLIENTResidential Building Company (“Head Contractor”) OTHER PARTYKitchen contractor (“Subcontractor”) CONTRACTSupply and install of kitchen and bathroom joinery BREACH OF CONTRACT DAMAGES$50,680.00 including GST COURT ORDER$50,680.00 including GST, Interest of $472.09 and Costs $1,769.50 The Subcontractor approached the Head Contractor claiming that it had successfully completed numerous kitchen and bathroom projects. It had one of its […]
Negotiations regarding variations
CLIENTRigging Contractor (“Subcontractor”) OTHER PARTYHead contractor (“Head Contractor”) CONTRACTContract to install structural steel to a recreational facility in Melbourne PAYMENT CLAIM$80,434.76 including GST PAYMENT SCHEDULE$46,141.00 The Head contractor withheld $80,343.76 for the recreational facility and withheld $61,055.54 on another job that was already completed. The initial payment schedule stated the payment proposed was $46,141.00. The difference related […]