GRD Kirfield Ltd v First Trade Consulting Pty Ltd

GRD Kirfield Ltd initiated an arbitration against First Trade Consulting Pty Ltd. The dispute centred on the interpretation of the terms of a building contract, specifically regarding the secondary funding arrangements, which involved subcontractors deferring payment in exchange for apartments in the project. The arbitrator found that there was an implied agreement for secondary funding by subcontractors, which the builder was obligated to facilitate. The builder disagreed and appealed the decision, arguing that the agreement was incomplete and unenforceable. The Supreme Court of Western Australia granted leave to appeal and partly upheld the appeal, finding that the arbitrator's conclusions on the secondary funding agreement constituted manifest errors of law. The court found that the implied agreement was incomplete and unenforceable, and that the builder was not obligated to produce a protocol for the secondary funding arrangements. The court also dismissed the appeal on the issue of the deeming provisions of the date of practical completion. The matter was remitted to the arbitrator for determination of the quantum of claims and the costs of the arbitration.