CPB Contractors Pty Limited v Transport for NSW

CPB Contractors Pty Limited filed a legal action against Transport for NSW, seeking compensation for delay costs that allegedly arose due to disruptions in their work on a major highway upgrade. The dispute came before the Supreme Court of New South Wales, which had to determine whether certain paragraphs of the Statement of Claim should be struck out under the Technology and Construction List Practice Note SC Eq 3, as there was no reasonable cause of action disclosed. The central issue was whether CPB Contractors was entitled to claim delay costs under the terms of the contract for the highway upgrade, given that the contract itself did not explicitly provide for such a claim.

The court examined the contract terms carefully to assess if there was any basis for CPB Contractors' claim. The contract in question did not contain any provisions that allowed for the recovery of delay costs, either directly or by implication. Consequently, the court found that CPB Contractors had not disclosed a reasonable cause of action for their claim. The court held that the application to strike out the relevant paragraphs of the Statement of Claim was appropriate, as the claim for delay costs was not supported by the contract terms.

Given that the claim for delay costs was not substantiated by the contract, the court struck out the relevant paragraphs of the Statement of Claim. This decision underscored the importance of adhering to the contract terms when making claims, particularly in construction contracts. The court’s ruling highlighted that claims must be grounded in the explicit provisions of the contract, and where such provisions are absent, the claim is not tenable.