McMaster Pty Ltd and Redcliffe City Council

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SUPREME COURT OF QUEENSLAND

CITATION: McMaster Pty Ltd and Redcliffe City Council [2000] QSC 092
PARTIES: McMASTER PTY LTD ACN 011 059 073
(plaintiff)
and
REDCLIFFE CITY COUNCIL
(defendant)
FILE NO: 1805 of 2000
DIVISION: Trial Division
DELIVERED ON: 26 April 2000
DELIVERED AT: Brisbane
HEARING DATE: 5 April 2000
JUDGE: Mackenzie J
ORDER: 1.  I give judgment that the respondent defendant pay the applicant plaintiff the sum of $520,397.20 as moneys due and payable pursuant to the contract together with interest on that sum from 29 February 2000 to the date of judgment.
2.  I order that the respondent pay the applicant's costs of and incidental to the application and the claim to be assessed.

CATCHWORDS:

CONTRACT – BREACH – time for payment of moneys due and owing under construction contract – time for issue of payment certificate – whether superintendent had been validly appointed.

Re Concrete Constructions group Pty Ltd (1997) 1QdR6
Algons Engineering Pty Ltd v Abigroup Contractors Pty Limited (1997) 14 BCL 215
Triden Contractors Pty Ltd v Belvista Pty Ltd (1987) 3 BCL 203

COUNSEL: J Bond SC for plaintiff
P McMurdo QC and D Bates for defendant
SOLICITORS: Clayton Utz for plaintiff
McCulloough Robertson for defendant
  1. MACKENZIE J:  This is an application for entry of judgment for moneys allegedly due and owing under a contract.  The facts are uncontroversial.  The applicant (the contractor) contracted with the respondent (the principal) to demolish the Redcliffe Jetty and build a new jetty in its place.  The superintendent named in the contract received the relevant progress claim from the respondent on 31 January 2000.  On 9 February 2000 the superintendent's appointment was terminated.

  1. The contract is in the form of General Conditions of Contract (AS2124-1992).  Clause 23 required the principal to ensure at all times that there was a superintendent.  Clause 24 permitted the superintendent to appoint an individual to exercise functions of the superintendent under the contract. 

  1. In respect of claims by the contractor it was the function of the superintendent under cl 42 to issue to the principal and contractor within 14 days after receipt of the claim by the superintendent, a payment certificate stating the amount of payment which in the superintendent's opinion was to be made.  Clause 42 also provides as follows:

"Subject to the provisions of the Contract, within 28 days after receipt by the Superintendent of a claim for payment or within 14 days of issue by the Superintendent of the Superintendent's payment certificate, whichever is the earlier, the Principal shall pay to the Contractor or the Contractor shall pay to the Principal, as the case may be, an amount not less than the amount shown in the Certificate as due to the Contractor or to the Principal as the case may be, or if no payment certificate has been issued the Principal shall pay the amount of the Contractor's claim.  A payment made pursuant to this Clause shall not prejudice the right of either party to dispute under Clause 47 whether…

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Details
Case
[2000] QSC 92
Decision Date

CaseChat Overview and Summary

In the case of McMaster Pty Ltd versus Redcliffe City Council, the applicant, McMaster, sought to enforce payment of monies due under a construction contract. The respondent, Redcliffe City Council, was obligated to issue payment certificates to McMaster for work completed. The dispute came before the court as the Council had not issued the requisite certificates, leading to non-payment of the full amount due. The legal issues revolved around the timeliness of issuing payment certificates under the construction contract and whether a superintendent had been validly appointed to assess and certify the work. The court examined the contractual obligations and the authority of the appointed superintendent.

The court found that the Council had not issued payment certificates within the stipulated timeframes, breaching the contract terms. It was held that the Council was obligated to issue these certificates upon McMaster's request for payment. Furthermore, the court determined that the superintendent appointed by the Council was validly appointed, thereby enabling the certification of work completed. As a result, the Council was liable to pay McMaster the full amount due, along with interest accruing from the date payment should have been made.

The court's judgment mandated that the Council pay McMaster the full sum of $520,397.20, plus interest from 29 February 2000 to the date of judgment. Additionally, the court ordered the Council to pay McMaster's costs associated with the application and the claim, with the amount of costs to be assessed. This decision underscores the importance of adherence to contractual timelines and the validity of appointed supervisory roles in construction projects.

Orders

Orders of the court

1. I give judgment that the respondent defendant pay the applicant plaintiff the sum of $520,397.20 as moneys due and payable pursuant to the contract together with interest on that sum from 29 February 2000 to the date of judgment.

2. I order that the respondent pay the applicant's costs of and incidental to the application and the claim to be assessed.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

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Decision

Reasons for decision

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

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