Onesteel Manufacturing Pty Ltd v United Kg Pty Ltd

Onesteel Manufacturing Pty Ltd took United Kg Pty Ltd to court over a dispute concerning the payment of costs incurred by the contractor under a target estimate contract. The primary issue was whether United was required to provide evidence and information to OneSteel's satisfaction to substantiate its claims for progress payments or the Final Reimbursable Costs Claim. The court was also asked to determine if there was an implied term that the costs must be reasonably and properly incurred, and whether the costs must be incurred in the course of performing the contract to the best of the contractor's endeavours.

The court addressed these questions by first clarifying the distinction between providing evidence and information to the reasonable satisfaction of OneSteel and OneSteel's requirement to provide such information as it may reasonably require. The court ruled that United's obligation was to furnish evidence and information that OneSteel's representative might reasonably demand, establishing an objective standard. The court further ruled that claims for reimbursable costs must be evidenced in a Progress Payment Claim Form unless they are part of a Final Reimbursable Costs Claim. Additionally, the court determined that reimbursable costs must be direct, actual, and reasonably and properly incurred, excluding certain specified circumstances.

The court concluded that United's obligation to support its claims with evidence and information as required by OneSteel's representative was clear and objective. The decision clarified the nature of the evidence and information required for claims under the contract and established the scope of reimbursable costs. The court answered the questions in a manner that provided clarity on the contractual obligations between the parties.