Keegan v Ballast Point Pty Ltd

The dispute in *Keegan v Ballast Point Pty Ltd* concerned a residential building contract. The builder, Keegan, sought payment from the owner, Ballast Point Pty Ltd, for work undertaken. The central issue revolved around the interpretation of the contract's general and special conditions regarding the process for payment claims and the architect's role in certifying such claims. The matter was heard in the Court of Appeal of New South Wales.

The primary legal issue before the Court of Appeal was whether the owner's obligation to pay the builder, and consequently the builder's entitlement to payment, was strictly limited to amounts that had been assessed and certified as due and payable by the architect. This question required the court to consider the interplay between the general conditions of the contract, which provided for monthly payment claims by the builder, and the special conditions, which appointed an architect to administer the contract on behalf of the owner, including the assessment and certification of these claims.

The Court of Appeal reasoned that the special conditions of the contract clearly stipulated that the architect was appointed to administer the contract and that this included the crucial function of assessing and certifying the builder's payment claims. The court held that the contract, as amended by the special conditions, made the architect's certification a prerequisite for the builder's entitlement to payment and the owner's obligation to pay. This interpretation underscored the importance of the architect's role as the designated certifier under the contract.

The appeal was dismissed, and the appellant was ordered to pay the costs of the appeal.