Who is the correct party to invoice?

PAYMENT CLAIMS MAY BE VALID IF SERVED ON PARTIES POTENTIALLY LIABLE, EVEN IF THEY ARE NOT THE CONTRACTING PARTY

We acted for Collective Crane Hire (CCH) in a payment dispute with ICR Steel to provide cranage works on multiple projects.

After CCH had started works onsite, verbal discussions occurred where ICR Steel directed CCH to invoice TCB Trans (Aust) instead of ICR Steel.

Upon completion of the works, ICR Steel denied liability for the panel cranage services and argued that they were not a party to the contract and therefore did not need to pay.

Judgment

The Court disagreed with ICR Steel and held that ICR Steel was both a party to the Contract and also that they were arguably liable to make payment even if they were not a direct party to the contract. The full amount sought was awarded to CCH plus interest and legal costs.

Takeaway Point

1. It is always preferable to ensure that you are invoicing the exact entity that you are contracted with.
2. Nevertheless, even if a party is not a party to the contract, as long as they are not a stranger to the construction contract, they may be arguably liable for payment .

CASE STUDY : Collective Crane Hire Pty Ltd v ICR Steel Pty Ltd [2021] VCC 132.
Read the details here.

What we can do for you

Using our industry experience and specialist legal knowledge, we can help you:

• Verify the companies you are contracting with by using our checklist;
• Teach you how to invoice the correct parties;
• Discuss ways to conduct background checks;
• Draft your terms and conditions to ensure that the parties are held liable for construction works completed;

If all else fails, we can help you recover disputed amounts using SOPA