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Articles by Tom Heading
Queensland court’s rare denial of adjudication payment balanced multiple factors
In this case, Taringa Property Group was granted a stay on paying a A$4 million (approx. USD$2,544,800) adjudication award because the claiming party, Kenik Pty Ltd, was in a “perilous financial position”.
Australian Consumer Law a potential defence to entitlements in construction disputes
The case between OSB Group Pty Ltd and Complete Hire & Sales Pty Ltd concerned a summary judgment application for a claimed amount where Complete failed to serve a payment schedule within an agreed timeframe and also failed to pay the claimed amount in accordance with the new Building and Construction Industry (Security of Payment) Act 2021 (WA).
Victorian report signals security of payment reform
The 2023 inquiry resulted in Victoria’s Environment and Planning Committee recommending several proposed changes to the Building and Construction Industry Security of Payment Act 2002 (Vic) (SOPA). In its recently published response (26-page / 407KB PDF) to the inquiry, the Victorian state government stated it is largely supportive of the 28 recommendations to SOPA, with eight recommendations of note “supported in full”.
Australian court confirms dismissed claims cannot be re-adjudicated
The case concerned three separate payment claims issued by GE Renewables Australia Pty Ltd and Elecnor Australia Pty Ltd (GE-Elecnor) - the engineering, procurement, and construction contractor for a wind farm in South Australia. Each of the three payment claims sought compensation in connection with delays arising in respect of site access (‘delay events’) allegedly caused by the principal, Goyder. Goyder applied for judicial review of an adjudication determination of the second payment claim.
Australia’s hydrogen future hinges on security of payment legislation clarity
Historically it was not clear whether SOPA applied to the construction of renewable energy projects given the language of the legislation and various exemptions included in the legislation. However progressive amendments to SOPA in Queensland and Western Australia, have generally remedied this uncertainty in relation to traditional renewable energy projects, including solar and wind.
Adjudications could rise with proposed Victoria security of payment reform
Melbourne-based Tom Heading of Pinsent Masons was commenting after a committee in the parliament of Victoria recommended that the Building and Construction Industry Security of Payment Act 2002 Vic (SOP Act) be updated to better help subcontractors obtain timely payment for work undertaken.
Australian court dismisses head contractor's ‘Grosvenor stay’ application for no prejudice
A common fear of head contractors, particularly in the current difficult contracting market, is being on the wrong side of an adjudicator’s decision obtained by a financially precarious subcontractor. The fear is that the adjudicated amount will be handed over to the impecunious subcontractor claimant, and that money will find its way into the general pool for distribution among creditors.
Australian court: application to set aside judgment debt must comply with formalities
The court dismissed an application by Linmas Holdings Pty Ltd (Linmas) to set aside a demand issued by Infigo II Pty Ltd (Infigo) based on an alleged offsetting claim. When making an application to set aside a judgment debt or adjudicated amount, statutory requirements under the Corporations Act (Cth) (the Act) must be complied with.
Australian court confirms time for serving payment certificate sets time for serving statutory payment schedule
This decision, in a dispute between Allencon Pty Ltd (Allencon) and Palmgrove Holdings Pty Ltd (trading as Carruthers Contracting) (Carruthers) demonstrates the importance, in a practical sense, of ensuring that the date for serving a payment certificate or schedule under the contract reflects the time stated in the Building Industry Fairness (Security of Payment) Act 2017 (Queensland) (BIF Act) for serving a statutory payment schedule.
Australian court: adjudication determinations should not be based on matters not raised by parties
The Supreme Court of New South Wales (NSW), in a recent case, has issued a reminder that adjudication determinations should not be made based on matters not raised by parties. The decision was made concerning a challenge to a determination under the 1999 Building and Construction Industry Security of Payment Act 1999 (NSW) (SOPA) in the case McNab Building Services Pty Ltd (McNab) v Demex Pty Ltd (Demex).
Construction disputes: global markets embrace adjudication
Adjudication is increasingly the “only game in town” for most construction disputes in the UK, and its popularity in other jurisdictions is taking off. A fast and relatively inexpensive means of dispute resolution, adjudication can help resolve interim payment disputes and keep projects moving.
Grattan Institute gets it ‘wrong’ on driving value in infrastructure projects
Public sector bodies need to work with contractors, not against them, to deliver the greatest value for taxpayers from major infrastructure projects, experts in construction contracts and dispute resolution have said.
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