CLIENT
Tiling Contractor (“Subcontractor”)

OTHER PARTY
Head contractor (“Head Contractor”)

CONTRACT
Install paving on pedestals based on a square metre rate

PAYMENT CLAIM
$31,530.37 including GST

PAYMENT SCHEDULE
Not provided

ADJUDICATION AWARD
$31,530.37 including GST, penalty interest and adjudication costs

The tiling contractor entered into a contract to install paving on pedestals.

After the contract was signed, the Head Contractor altered the construction method from the standard pedestal paving system to a modified pedestal steel joist paving system. The Subcontractor expressed concerns about the modified pedestal steel joist paving system including:
• The area is non-trafficable for 2 days
• Once the pavers are fixed, it is difficult to remove if access to drains are required
• The process being extremely time consuming
• Quality cannot be guaranteed, especially the uniformity of pavers installed.

The Head Contractor signed a letter stating that he would assume the risk of defects resulting from the modified system.

After the installation of the pavers, numerous trades walked over the pavers due to concerns about the schedule.

Significant defects resulted. Tiling was not uniform, the tiles were lipping, gaps in tiling were not even etc.

The Head Contractor stated that it was backcharging the Subcontractor $38,559.40 including GST and therefore would not pay the final claim.

LPF made an adjudication application on behalf of the Subcontractor.

In the Adjudicator’s determination, he stated that the Head Contractor could not lodge an adjudication response as it had not provided a valid payment schedule within time. The Adjudicator accepted LPF’s submissions about work completed and defects.

After the Head Contractor paid the adjudication award to the Subcontractor, the Head Contractor initiated a VCAT case alleging defects.

The Subcontractor paid $15,000.00 to settle the case.

CONCLUSION
As a Subcontractor, if a method of construction will result in defects, it is advisable to refuse to proceed using the proposed construction method. A Subcontractor is assumed to be an expert in their field.