Merym Pty Ltd and Methodist Ladies College

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MERYM PTY LTD and METHODIST LADIES COLLEGE [2008] WASAT 164



STATE ADMINISTRATIVE TRIBUNALCitation No:[2008] WASAT 164
CONSTRUCTION CONTRACTS ACT 2004 (WA)
Case No:CC:644/200817 JUNE 2008
Coram:MR C RAYMOND (SENIOR MEMBER)21/07/08
14Judgment Part:1 of 1
Result: Application dismissed
B
PDF Version
Parties:MERYM PTY LTD
METHODIST LADIES COLLEGE

Catchwords:

Construction Contracts Act 2004 (WA)
Whether previously rejected claims amenable to adjudication by reason of superintendent's failure to certify in time
Whether decision to dismiss characterised as a decision made under s 31(2)(a) of Construction Contracts Act 2004 (WA)

Legislation:

Construction Contracts Act 2004 (WA), s 31(2)(a), s 31(2)(b), s 35(2)(b), s 46, s 46(1)

Case References:

Algons Engineering Pty Ltd v Abi Group [1997] NSWSC 478
Brewarrina Shire Council v Beckhaus Civil Pty Ltd (2003) 56 NSWLR 576
Daysea Pty Ltd v Watpac Australia Pty Ltd [2001] QCA 49
Devaugh Pty Ltd v Lamac Developments Pty Ltd [1990] WASC 280
Diploma Construction Pty Ltd v Esslemont Nominees Pty Ltd [2006] WASAT 350
Silent Vector Pty Ltd Trading as Sizer Builders and John Squarcini [2008] WASAT 39


Orders

1. The application for the review of the adjudication decision dated 15 April 2008 is dismissed.

Summary

The applicant applied to the State Administrative Tribunal for the review of the decision of an adjudicator pursuant to s 46(1) of the Construction Contracts Act 2004 (WA).,The applicant contended that the adjudicator had wrongly dismissed part of two progress claims by not determining that the superintendent's failure to issue a progress claim certificate within the stipulated time limit resulted in a payment dispute which had arisen within 28 days of the making of the application for adjudication. Further, it was contended that a claim in respect of three variation orders included as part of the payment claims had in any event never been previously submitted and had therefore been made in time.,The State Administrative Tribunal concluded that the failure to certify a progress claim did not result in the amount of the claim becoming payable, unless the claim had been properly submitted with supporting evidence and such other information as might reasonably be required by the superintendent. It was therefore necessary to consider the particular claims in dispute.,In relation to a variation order for extra costs associated with the excavation of rock, the State Administrative Tribunal found that the claim had been incorporated in a previous progress claim and had been rejected by the superintendent. As no further evidence or information had been provided when the claim was repeated, no entitlement arose through the payment mechanism provisions of the contract. Although the adjudicator had purported to make the decision to dismiss as part of his consideration of the merits of the claim, after expressly deciding that the application did not fall to be dismissed under s 31(2)(a) of the Construction Contracts Act 2004, the State Administrative Tribunal concluded that it had to be properly characterised as a decision to dismiss…
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Details
Case
[2008] WASAT 164
Decision Date

CaseChat Overview and Summary

Merym Pty Ltd brought an application for judicial review of an adjudicator's decision against the Methodist Ladies College. The dispute arose under a building contract, with the adjudicator's decision relating to previously rejected claims. The crux of the matter was whether the superintendent's failure to certify the claims in a timely manner rendered them amenable to adjudication, and if the decision to dismiss the claims could be characterised as a decision made under section 31(2)(a) of the Construction Contracts Act 2004 (WA). The court was tasked with determining the proper interpretation of the Act and its application to the specific circumstances of this case.

The court examined the statutory provisions and their interaction with the contractual terms and procedures. It was necessary to clarify the scope and effect of the superintendent's certification process and its implications for the admissibility of claims in adjudication. The court also considered whether the decision to dismiss the claims was a decision made under section 31(2)(a), which pertains to the timing and process of claims adjudication. The interpretation of these provisions and their application to the facts of the case were pivotal in resolving the dispute.

The court found that the superintendent's failure to certify the claims did not make them amenable to adjudication. Furthermore, the decision to dismiss the claims was not a decision made under section 31(2)(a) of the Construction Contracts Act 2004 (WA). Consequently, the application for the review of the adjudication decision was dismissed. The court upheld the adjudicator's decision and confirmed its validity in the context of the statutory and contractual framework.

Orders

Orders of the court

1. The application for the review of the adjudication decision dated 15 April 2008 is dismissed.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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