Contrast Constructions Pty Ltd v Bartlett

Contrast Constructions Pty Ltd appealed against a decision of the Queensland Civil and Administrative Tribunal (QCAT) in a dispute with Bartlett regarding liquidated damages under a construction contract. The Tribunal had previously ruled in favour of Bartlett, ordering Contrast Constructions to pay Bartlett $218,940.17. Contrast Constructions contested this ruling, arguing that the Tribunal had erred in its decision. The appeal focused on the interpretation and application of clause M8 of the contract, which prescribed the entitlement to liquidated damages.

The central legal issue in the appeal was whether the Tribunal correctly interpreted and applied clause M8 in ruling that Bartlett's claim for liquidated damages should fail. Bartlett had argued that Contrast Constructions was liable for liquidated damages from 21 March 2008, the adjusted date for practical completion, until 15 December 2009, the date the contract was terminated. The Tribunal found that Bartlett's claim for liquidated damages should fail because outstanding instructions and other issues would have delayed practical completion, justifying an extension of time for Contrast Constructions. Furthermore, the Tribunal noted that Bartlett unreasonably delayed in serving a notice to remedy the breach.

The Court of Appeal found that the Tribunal had indeed erred in its interpretation of clause M8. The Court held that the Tribunal should not have considered the outstanding instructions and other issues in determining whether Contrast Constructions was liable for liquidated damages. The Court further found that Bartlett's delay in serving the notice to remedy the breach did not affect the liability for liquidated damages. The Court of Appeal thus allowed the appeal in part, reducing the amount Contrast Constructions had to pay Bartlett and allowing interest on the reduced amount.

The final orders of the Court of Appeal were that the appeals were allowed in part, reducing the payment from Contrast Constructions to Bartlett to $216,040.17 and allowing interest on this amount at a rate of ten percent per annum compounding monthly from 15 December 2009 to 4 February 2013.