Naraki v Dream Design Building Pty Ltd ACN 167 817 030 (Civil Dispute)

Naraki was involved in a dispute with Dream Design Building Pty Ltd over an unpaid final invoice for work done on a shop fit-out. Naraki alleged that Dream Design had failed to pay for the work completed and sought payment through the Civil and Administrative Tribunal (CAT). Dream Design argued that the work was substandard and that the additional costs were due to variations and defects not agreed to by Naraki. This was a case of an oral agreement for a shop fit-out, where the dispute centred on the terms of the agreement, the quality of the work, and the legitimacy of the additional charges claimed by Dream Design.

The primary legal issues for the Tribunal to decide were whether Dream Design was liable to pay the final invoice in full and whether the additional charges were justified. The Tribunal had to consider the terms of the oral agreement, the quality of the work done, and the legitimacy of the additional charges claimed by Dream Design. The Tribunal also had to determine whether Dream Design had breached any statutory obligations under the Building and Construction Industry Security of Payment Act 2002 (NSW).

The Tribunal found that Dream Design was liable to pay Naraki the sum of $922.50, which included the cost of the shop sign, the ACAT filing fee, and the ASIC search fee. However, the Tribunal dismissed Naraki’s claim for the remaining amount of the final invoice, finding that Dream Design had provided evidence of defects and variations that were not agreed to by Naraki. The Tribunal held that Dream Design had not breached any statutory obligations under the Security of Payment Act, as the payment claim and schedule provided by Dream Design were sufficient. The Tribunal concluded that the additional charges claimed by Dream Design were justified and that Naraki had failed to prove that the work was substandard or that the additional charges were not legitimate.