BHW Solutions Pty Ltd v Altitude Constructions Pty Ltd

In the case of BHW Solutions Pty Ltd v Altitude Constructions Pty Ltd, the Queensland Court of Appeal was tasked with determining the validity of payment claims submitted under the Building and Construction Industry Payments Act 2004 (Qld). BHW Solutions, a subcontractor, submitted payment claims to Altitude Constructions, the main contractor, for work completed. The claims were intended to enforce the statutory rights to prompt payment. However, Altitude Constructions did not respond with payment schedules as required by the Act. Instead, Altitude Constructions raised objections, arguing that the payment claims were invalid because they were not accompanied by statutory declarations, as required by the contractual terms between the parties.

The primary legal issue before the court was whether the absence of statutory declarations in the payment claims rendered them invalid, thus precluding BHW Solutions from enforcing its statutory rights to prompt payment. The court considered whether the contractual requirement for statutory declarations could override the statutory provisions under the Act, which provide for a streamlined process for payment claims. The court also had to determine the effect of the statutory right to prompt payment and whether it could be frustrated by contractual requirements not explicitly authorised by the Act.

The court held that the statutory right to prompt payment is a substantive entitlement provided under the Building and Construction Industry Payments Act 2004, and it is not subject to contractual preconditions that are not expressly authorised by the Act. The court emphasised that the Act was designed to protect subcontractors and ensure timely payments in the construction industry. The contractual requirement for statutory declarations did not align with the legislative intent to provide a straightforward mechanism for payment claims. Consequently, the absence of declarations did not invalidate the payment claims. The court found in favour of BHW Solutions and ordered Altitude Constructions to pay the full amount claimed, inclusive of interest. Additionally, Altitude Constructions was ordered to pay the costs of the application as per the provisions of the Act.