Canterbury-Bankstown Council v Payce Communities Pty Ltd

Canterbury-Bankstown Council (the Council) and Payce Communities Pty Ltd (Payce) were parties to a dispute concerning a building contract. The dispute, heard by the Court of Appeal of New South Wales, involved whether certain claimed variations fell within the contractual scope of work, and also concerned a builder's margin and Goods and Services Tax (GST).

The Court of Appeal was required to determine whether the primary judge had erred in finding that specific variations were within the scope of the contract. Further, the court considered the calculation of the builder's margin and the application of GST in relation to these variations.

The Court of Appeal allowed the appeal in part. It varied the primary judge's declaration by adjusting the figures relating to the builder's margin and GST. The court substituted $1,020,601.46 for $1,068,304.75 in one declaration and $303,432.28 for $255,728.99 in another. The remainder of the appeal and the cross-appeal were dismissed. The Council was ordered to pay 80% of Payce's costs for the appeal and cross-appeal.