BGC Construction and Vagg & Anor

BGC Construction sought a review of a decision made by the Building Disputes Tribunal which ruled that they were liable to pay Vagg and another respondent $7,772.35 for non-completion of a construction project within the stipulated period. The Supreme Court of Western Australia was tasked with determining the correct interpretation of the liquidated damages clause and the applicable interest rate.

The primary legal issues centred around the interpretation of the term "day" within the liquidated damages clause, whether it referred to a calendar day or a working day. Additionally, the court had to decide the appropriate rate of interest to be applied under sections 32 and 34 of the Supreme Court Act 1935 (WA), and whether these sections applied to the Building Disputes Tribunal, considering it a "court" for these purposes.

The court found that the term "day" in the liquidated damages clause should be interpreted as a working day, not including weekends or public holidays. As for the interest rate, the court held that sections 32 and 34 of the Supreme Court Act 1935 (WA) did not apply to the Building Disputes Tribunal, and thus, the tribunal was not considered a "court" for these purposes. The court subsequently determined the appropriate interest rate based on prevailing market rates.

The court granted leave to review the Building Disputes Tribunal's decision and remitted the matter back to the tribunal for reconsideration in light of the court's findings.