MacDonald v Queensland Building and Construction Commission

The applicant, Mr MacDonald, appealed against the decision of the Queensland Building and Construction Commission (QBCC) that the homeowners validly terminated the building contract. The appeal was heard over several dates, and the Tribunal made findings on a number of contested issues. The QBCC submitted that the builder’s breaches of the contract amounted to a repudiation of the contract which the homeowners were entitled to accept. The builder submitted that he had not repudiated the contract and that the homeowners were not entitled to terminate it. The Tribunal found that the contract did not exclude the common law right to terminate. However, it found that the builder’s breaches did not demonstrate an intention to repudiate the contract. The breaches occurred in the context that the homeowners breached the contract in numerous ways and their breaches and actions made it impossible for the builder to complete the works by the date agreed. The Tribunal found that the homeowners were not entitled to accept any repudiation by the builder because they were not ready willing and able to complete the contract. The Tribunal set aside the decision of the QBCC and substituted its own decision that the homeowners did not validly terminate the contract on 19 August 2008.