Estate Property Holdings Pty Ltd v Barclay Mowlem Construction Ltd

Estate Property Holdings Pty Ltd (the respondent) sought to recover progress payments from Barclay Mowlem Construction Ltd (the appellant) under the *Building and Construction Industry Security of Payment Act 2002* (NSW). The dispute concerned the interpretation of "construction work to which the claim relates" within the Act, specifically in relation to a progress claim made by the respondent. The matter came before the Court of Appeal of New South Wales.

The central legal issue before the Court of Appeal was to determine the correct interpretation of the phrase "construction work to which the claim relates" as used in the *Building and Construction Industry Security of Payment Act 2002* (NSW). This involved considering whether this phrase referred to the work required by the contract generally, the specific work for which payment was claimed, or each individual item of work for which payment was sought.

The Court of Appeal held that the phrase "construction work to which the claim relates" refers to the work for which payment is claimed. The Court reasoned that the purpose of the Act is to facilitate cash flow within the building and construction industry by providing a statutory mechanism for progress payments. To achieve this, a progress claim must clearly identify the work for which payment is sought, allowing the respondent to assess the claim and the claimant to understand what work has been valued. The Court dismissed the appeal, upholding the decision of the lower court. The appellant was ordered to pay the respondent's costs.