Civil Mining and Construction Pty Ltd v Wiggins Island Coal Export Terminal Pty Ltd (No 2)

Civil Mining and Construction Pty Ltd (CMC) sued Wiggins Island Coal Export Terminal Pty Ltd (WICET) over a delay claim arising from a construction contract. The dispute centred on the quantification of the delay claim, specifically the calculation of on-site overheads for a 208-day extension of time. The parties had differing views on the methodology for calculating the daily rate for on-site overheads. The Federal Court of Australia was tasked with determining whether CMC could reopen its case to present expert evidence to quantify the delay claim, given that the final judgment hinged on this quantification. Additionally, the court had to assess whether WICET would be prejudiced by CMC reopening its case and whether any issues of natural justice would arise.

The court found that CMC was entitled to an extension of time of 208 days, but the quantification of the delay claim remained unresolved. The key issue was whether CMC should be permitted to reopen its case to present expert evidence on the appropriate daily rate for on-site overheads. The court considered the implications of CMC’s pleadings and the principle of natural justice in its decision. The court held that CMC’s pleadings did not limit its ability to present expert evidence on the correct methodology for calculating the daily rate for on-site overheads, as the task required by the contract had not been properly addressed by any expert. Consequently, the court granted CMC leave to reopen its case for this purpose, while reserving further directions and costs.

The court's decision allowed CMC to present expert evidence to quantify the delay claim, ensuring that the task outlined in the contract was properly addressed. This decision was grounded in the need for the court to have the benefit of expert assistance in quantifying the delay claim, particularly given the significant omissions and discrepancies in the Overheads Spreadsheet. The court's ruling was also influenced by the principle of natural justice, ensuring that CMC had the opportunity to present its case in the most effective manner possible. The court reserved further directions and costs for later determination.