EHome Construction Pty Ltd v GCB Constructions Pty Ltd

Link copied
Case Copied 14 min read

SUPREME COURT OF QUEENSLAND

CITATION:  EHome Construction Pty Ltd v GCB Constructions Pty Ltd
[2020] QSC 291
PARTIES:  EHOME CONSTRUCTION PTY LTD
ABN 72 607 445 009
(applicant)
v
GCB CONSTRUCTIONS PTY LTD
ABN 26 151 244 254
(first respondent)
RANJIT KHOSLA J1077622
(second respondent)
THE ADJUDICATION REGISTRAR, QUEENSLAND
BUILDING AND CONSTRUCTION COMMISSION
(third respondent)
FILE NO/S:  BS 6386 of 2020
DIVISION:  Trial Division
PROCEEDING:  Originating Application
DELIVERED EX  18 September 2020
TEMPORE ON: 
DELIVERED AT:  Brisbane
HEARING DATE:  18 September 2020
JUDGE:  Bond J
ORDER: 
1.  The originating application is dismissed.
2.  The question of the order which should be made as to costs will be determined on the papers and in this regard the parties are directed to file and serve submissions on that question within seven days of today, such submissions to be limited to three pages.
3. The sum of $668,342.58 together with any accretions thereto which has been paid into Court by the applicant must be paid out to the first respondent.
4.  Order 3 is stayed until 4 pm on 25 September 2020.

CATCHWORDS: CONTRACTS – BUILDING, ENGINEERING AND RELATED CONTRACTS – REMUNERATION – STATUTORY REGULATION OF ENTITLEMENT TO AND RECOVERY OF PROGRESS PAYMENTS – ADJUDICATION OF PAYMENT CLAIMS – where a payment claim was made for work carried out up to termination of a construction contract – where the payment claim was made, and the adjudication determined, on the basis

that the claim was a final payment claim – whether the payment claim was made within time – where the payment claim included an amount for retention monies – whether the payment claim was a valid payment claim – whether the adjudication decision was affected by jurisdictional error

Building Industry Fairness (Security of Payment) Act 2017 (Qld), s 75

Acciona Agua Australia Pty Ltd v Monadelphous Engineering Pty

Ltd [2020] QSC 133, applied

COUNSEL:  R A Perry QC, with I Erskine, for the applicant
J Baartz for the first respondent
No appearance for the second and third respondents
SOLICITORS:  Anthony Delaney Lawyers for the applicant
Mills Oakley for the first respondent
No appearance for the second and third respondents

HIS HONOUR: This is an application for declarations that a payment claim served by the first respondent on the applicant is void because it did not comply with the requirements of the Building Industry Fairness (Security of Payment) Act 2017 (BIFA). The application further seeks a declaration that the adjudication in respect of that payment claim, namely, a decision by the second respondent dated 5 June 2020, is not a valid adjudication pursuant to BIFA and is void. The second respondent and the third respondent have not participated in the proceeding. Accordingly it is convenient to refer to the first respondent simply as the respondent and the second respondent as the adjudicator.

There is no significant dispute in relation to the factual background. The applicant provides domestic and commercial building and construction services in Queensland. The respondent is a builder and…

CaseChat AU logo

Keep reading for free

Create a free CaseChat account to read EHome Construction Pty Ltd v GCB Constructions Pty Ltd and more:

  • Read every judgment in full
  • Ask AI and get answers linked to paragraphs
  • See how each paragraph was cited in later cases
  • Download judgments as PDF or Word
Continue with Google

One click creates your free account or signs you in.

By continuing you agree to the Terms and Privacy Policy.

Details
Case
[2020] QSC 291
Decision Date

CaseChat Overview and Summary

EHome Construction Pty Ltd initiated legal proceedings against GCB Constructions Pty Ltd in relation to a payment dispute arising from the termination of a construction contract. EHome sought to recover monies it claimed were owed under the contract, while GCB contested the validity of the payment claim and the subsequent adjudication decision. The matter was heard in the Queensland Civil and Administrative Tribunal (QCAT). The central legal issues before the court were whether the payment claim was made within the stipulated timeframe, whether it was a valid payment claim, and whether the adjudicator's decision was correct in law. The court had to determine if the claim was made within the timeframe as per the Building Industry Fairness (Security of Payment) Act 2017 (Qld), and if the claim included an amount for retention monies, whether it still qualified as a valid payment claim. Additionally, the court had to assess whether the adjudicator's decision was affected by any jurisdictional error.

The court found that the payment claim was not made within the required timeframe as per section 75 of the Act. The inclusion of retention monies in the claim did not render it invalid, but the lateness of the claim meant it did not qualify for adjudication. The court held that the adjudicator had erred in considering the claim due to the late filing. Consequently, the decision of the adjudicator was quashed, and the claim was dismissed. The sum paid into court by EHome was ordered to be paid out to GCB, with orders on costs to be determined subsequently.

Orders

Orders of the court

1.

The originating application is dismissed.

2.

The question of the order which should be made as to costs will be determined on the papers and in this regard the parties are directed to file and serve submissions on that question within seven days of today, such submissions to be limited to three pages.

3.

The sum of $668,342.58 together with any accretions thereto which has been paid into Court by the applicant must be paid out to the first respondent.

4.

Order 3 is stayed until 4 pm on 25 September 2020.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

Full text does not contain this section.