Pindan Pty Ltd v Seattle Holdings Pty Ltd

Case

[2016] WADC 97

30 JUNE 2016

No judgment structure available for this case.

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District Court of
Western Australia
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PINDAN PTY LTD -v- SEATTLE HOLDINGS PTY LTD [2016] WADC 97



DISTRICT COURT OF WESTERN AUSTRALIACitation No:[2016] WADC 97
Case No:CIV:3075/201215-19, 23-26 JUNE & 24 SEPTEMBER 2015
Coram:MCCANN DCJ30/06/16
PERTH
77Judgment Part:1 of 2
Result: Judgment for the plaintiff against both defendants
Damages awarded in the sum of $607,354
Other Parts:Pages 51 to 77
PDF Version
Parties:PINDAN PTY LTD
SEATTLE HOLDINGS PTY LTD
HECTOR STEPHENSON VINCENT

Catchwords:

Building contract
Supply and installation of vinyl flooring
Not fit for purpose
Construction of contract and warranty
Implied terms
Breach of contract
Turns on own facts
Trade practices
Deceptive and misleading conduct
Representations as to suitability of floor treatment
Whether as to a future or present matter
Breach proven
Turns on own facts

Legislation:

Civil Liability Act 2002 s 5B
Fair Trading Act 1987 (WA) s 10, s 79(2)
Trade Practices Act 1974 (Cth) s 6(3), s 52, s 82

Case References:

Australian Competition and Consumer Commission v Dukemaster Pty Ltd [2009] FCA 682; ATPR 42-290
Beer v Duracraft Pty Ltd [2004] WASCA 192
BHP Billiton Olympic Dam Corporation Pty Ltd v Steuler Services GmbH & Co KG [2014] VSCA 338
BP Refinery (Westernport) Pty Ltd v Shire of Hastings (1977) 18 CLR 266
CH Real Estate Pty Ltd v Jainran Pty Ltd [2010] NSWCA 37
Chamberlain v The Queen (No 2) (1984) 153 CLR 521
CJD Equipment v A&C Constructions [2009] NSWC 1362
Codelfa Construction Pty Ltd v State Rail Authority of New South Wales (1982) 149 CLR 337
Elders Trustee and Executor Co Ltd v EG Reeves Pty Ltd(1987) 78 ALR 193
Fox v Percy [2003] HCA 22; (2003) 214 CLR 118
Henville v Walker [2001] HCA 52; 206 CLR 459
I & L Securities Pty Ltd v HTW Valuers (Brisbane) Pty Ltd [2002] HCA 41; 210 CLR 109
Jacques v Cut Price Deli Pty Ltd (1993) ATPR (Digest) 46-102
Janssen-Cilag Pty Ltd v Phizer (1992) 109 ALR 638
Jones v Dunkel (1959) 101 CLR 298
Makita (Aust) Pty Ltd v Sprowles [2001] NSWCA 305; (2001) 52 NSWLR 705
March v E & MH Stramare Pty Ltd (1991) 171 CLR 506
Miba Pty Ltd v Nescor Industries Group Pty Ltd (1996) 141 ALR 525
Pollock v Wellington (1996) 15 WAR 1
Pownall v Conlan Management Pty Ltd (1995) 12 WAR 370
Ramsay v Watson (1961) 108 CLR 642
Secured Income Real Estate (Australia) Ltd v St Martins Investments Pty Ltd (1979) 144 CLR 596
Steelfab Engineering Pty Ltd v ACME Group Pty Ltd [2000] WASC 198
Swick Nominees Pty Ltd t/as Swick Drilling Australia v Norncott Pty Ltd [No 3] [2013] WASC 173
Sykes v Reserve Bank of Australia (1998) 158 ALR 710
Ting v Blanche (1993) 118 ALR 543
Tobacco Institute of Australia v Australian Federation of Consumer Organisations Inc (1992) 111 ALR 61
Tranquility Pools & Spas Pty Ltd v Huntsman Chemical Co Australia Pty Ltd [2011] NSWSC 75
Transglobal Capital Pty Ltd v Yolarno Pty Ltd [2005] NSWCA 68
Travel Compensation Fund v Trambree t/as R Tambree & Associates [2005] HCA 69; (2006) 80 ALJR 183
Wardley Australia Limited v Western Australia (1992) 175 CLR 514


JURISDICTION : DISTRICT COURT OF WESTERN AUSTRALIA
    IN CIVIL
LOCATION : PERTH CITATION : PINDAN PTY LTD -v- SEATTLE HOLDINGS PTY LTD [2016] WADC 97 CORAM : MCCANN DCJ HEARD : 15-19, 23-26 JUNE & 24 SEPTEMBER 2015 DELIVERED : 30 JUNE 2016 FILE NO/S : CIV 3075 of 2012 BETWEEN : PINDAN PTY LTD
    Plaintiff

    AND

    SEATTLE HOLDINGS PTY LTD
    Defendant
FILE NO/S : CIV 3135 of 2013 BETWEEN : PINDAN PTY LTD
    Plaintiff

    AND

    HECTOR STEPHENSON VINCENT
    Defendant

Catchwords:

Building contract - Supply and installation of vinyl flooring - Not fit for purpose - Construction of contract and warranty - Implied terms - Breach of contract - Turns on own facts



Trade practices - Deceptive and misleading conduct - Representations as to suitability of floor treatment - Whether as to a future or present matter - Breach proven - Turns on own facts

Legislation:

Civil Liability Act 2002 s 5B


Fair Trading Act 1987 (WA) s 10, s 79(2)
Trade Practices Act 1974 (Cth) s 6(3), s 52, s 82

Result:

Judgment for the plaintiff against both defendants


Damages awarded in the sum of $607,354

Representation:

CIV 3075 of 2012

Counsel:


    Plaintiff : Mr A W B Buchan
    Defendant : Mr G MacLean

Solicitors:

    Plaintiff : Hotchkin Hanly
    Defendant : MacLean Legal

CIV 3135 of 2013

Counsel:


    Plaintiff : Mr A W B Buchan
    Defendant : Mr G MacLean

Solicitors:

    Plaintiff : Hotchkin Hanly
    Defendant : MacLean Legal


Case(s) referred to in judgment(s):

Australian Competition and Consumer Commission v Dukemaster Pty Ltd [2009] FCA 682; ATPR 42-290
Beer v Duracraft Pty Ltd [2004] WASCA 192
BHP Billiton Olympic Dam Corporation Pty Ltd v Steuler Services GmbH & Co KG [2014] VSCA 338
BP Refinery (Westernport) Pty Ltd v Shire of Hastings (1977) 18 CLR 266
CH Real Estate Pty Ltd v Jainran Pty Ltd [2010] NSWCA 37
Chamberlain v The Queen (No 2) (1984) 153 CLR 521
CJD Equipment v A&C Constructions [2009] NSWC 1362
Codelfa Construction Pty Ltd v State Rail Authority of New South Wales (1982) 149 CLR 337
Elders Trustee and Executor Co Ltd v EG Reeves Pty Ltd(1987) 78 ALR 193
Fox v Percy [2003] HCA 22; (2003) 214 CLR 118
Henville v Walker [2001] HCA 52; 206 CLR 459
I & L Securities Pty Ltd v HTW Valuers (Brisbane) Pty Ltd [2002] HCA 41; 210 CLR 109
Jacques v Cut Price Deli Pty Ltd (1993) ATPR (Digest) 46-102
Janssen-Cilag Pty Ltd v Phizer (1992) 109 ALR 638
Jones v Dunkel (1959) 101 CLR 298
Makita (Aust) Pty Ltd v Sprowles [2001] NSWCA 305; (2001) 52 NSWLR 705
March v E & MH Stramare Pty Ltd (1991) 171 CLR 506
Miba Pty Ltd v Nescor Industries Group Pty Ltd (1996) 141 ALR 525
Pollock v Wellington (1996) 15 WAR 1
Pownall v Conlan Management Pty Ltd (1995) 12 WAR 370
Ramsay v Watson (1961) 108 CLR 642
Secured Income Real Estate (Australia) Ltd v St Martins Investments Pty Ltd (1979) 144 CLR 596
Steelfab Engineering Pty Ltd v ACME Group Pty Ltd [2000] WASC 198
Swick Nominees Pty Ltd t/as Swick Drilling Australia v Norncott Pty Ltd [No 3] [2013] WASC 173
Sykes v Reserve Bank of Australia (1998) 158 ALR 710
Ting v Blanche (1993) 118 ALR 543
Tobacco Institute of Australia v Australian Federation of Consumer Organisations Inc (1992) 111 ALR 61
Tranquility Pools & Spas Pty Ltd v Huntsman Chemical Co Australia Pty Ltd [2011] NSWSC 75
Transglobal Capital Pty Ltd v Yolarno Pty Ltd [2005] NSWCA 68
Wardley Australia Limited v Western Australia (1992) 175 CLR 514
    MCCANN DCJ:




Introduction

1 The plaintiff (Pindan) is a commercial building contractor. It claims damages from the defendant in action 3075 of 2012 (Seattle) and the defendant in action 3135 of 2013 (Mr Vincent) in respect of defective vinyl floor treatments which Seattle supplied and laid for Pindan at the Atwell Secondary School between November 2007 and January 2009.

2 The flooring failed approximately 2 – 3 years after it was laid because the water-based adhesive that Seattle used to fix the vinyl to the concrete sub-strate (ie, the slabs) re-emulsified. It is common ground that the adhesive re-emulsified due to the collection of moisture (as water or water vapour) between the underside of the vinyl and the surfaces of the slabs. The affected flooring had to be replaced at a cost of $607,354.

3 Pindan contends (Pindan's hypothesis) that the moisture emanated from moisture that was held within the slabs after they were poured (retained moisture). The retained moisture was able to migrate out through the surfaces of the slabs because of the failure of a sealant that Seattle applied to the slabs (Aquron 2000) which was supposed to stop it from happening.

4 In reliance upon findings being made to that effect, Pindan pleads three causes of action against Seattle, namely:


    (i) Breach of express and implied terms of the contract between Pindan and Seattle;

    (ii) Misleading or deceptive conduct contrary to s 52 of the former Trade Practices Act 1974 (Cth) (TPA) in respect of an alleged representation made by Seattle as to the suitability of Aquron; and

    (iii) Negligence in relation to carrying out the flooring work.


5 There is no claim against Seattle in respect of the giving of negligent advice.

6 Pindan pleads two causes of action against Mr Vincent, namely:


    (i) Misleading or deceptive conduct contrary to s 10 of the Fair Trading Act 1987 (WA) (FTA); and

    (ii) Misleading or deceptive conduct by the use of a telephonic service contrary to s 52 and s 6(3) of the TPA.


7 Pindan's statutory claims are predicated on further findings being made that:

    (i) Seattle and Mr Vincent represented to Pindan that the application of Aquron would prevent the retained moisture from migrating out of the slabs.

    (ii) Such representation was not correct.

    (iii) Pindan relied on the representation by instructing Seattle to apply Aquron instead of employing other solutions.


8 Seattle and Mr Vincent deny these allegations and contend that:

    (i) They did not make any representation as to the efficacy of Aquron as a sealant and, at the most, simply relayed information contained in the manufacturer's marketing and technical literature.

    (ii) Further or alternatively, the representation was true because Aquron is an effective sealant and was suitable to contain the retained moisture.

    (iii) Further or alternatively, such representation was not relied upon by Pindan in that Pindan and/or the construction superintendent made their own fully informed decision to use Aquron.

    (iv) Further or alternatively, any representations that were made and any contractual obligations or warranties regarding Aquron only applied if the source of the moisture was retained moisture, that is, a static and fixed amount of moisture in each slab. The defendants contend that the problem was not caused by retained moisture. They contend that the source of the moisture from the slabs was the ingress of groundwater which rendered the Aquron treatment ineffective (the groundwater hypothesis). Alternatively, the moisture emanated from the ingress of rainwater through leaks in the exterior fabric of the buildings (the leak hypothesis).


9 There are a number of factual issues, but it is common ground that Pindan cannot succeed if either (or both) of the groundwater or leak hypotheses is made out.

10 Seattle also contends that its contractual liability (if any) to Pindan is limited by an exclusionary provision.




Some basic facts

11 In 2006 Pindan was awarded a contract by the Western Australian Department of Housing and Works (DHW) to construct approximately half of the buildings comprised in the new Atwell Secondary School (the Head Contract). Atwell is a southern suburb of Perth.

12 The remainder of the works were awarded to another contractor.

13 The Head Contract was superintended by a firm of architects – Jones Coulter Young (JCY). JCY's representative was Mr John Sullivan, although he delegated to others at times.

14 The structural engineer (KBR) also had a representative, namely Robert Mellis, who also delegated to others at times.

15 Pursuant to the Head Contract, Pindan built eight buildings and ancillary works on a site located at lot 126/215 Brenchley Drive (the Site). The Site is part of a larger parcel of land bounded by Brenchley Drive to the west and east, Atwell Reserve to the north and Bartram Road to the south.

16 The buildings were:


    (i) the administration building;

    (ii) the performing arts, media and music building;

    (iii) the Kim Beazley learning community building;

    (iv) the middle school building – south block (year 7);

    (v) the middle school building – north block (year 8);

    (vi) the library, café and student services building;

    (vii) covered basketball courts;

    (viii) the specialised learning building (for visual arts, science and textiles).


17 All of these buildings are single-storied, except for part of the specialised learning building which has an upstairs area.

18 Pindan completed the works in two stages in accordance with a timetable designed to ensure that the buildings were ready for use in accordance with the 2009 school calendar.

19 The stage 1 works comprised the administration and Kim Beazley buildings, the middle schools south and north and the basketball courts. The administration, the Kim Beazley building (excluding the hydrotherapy area) and the middle school south were completed in February 2008. The remaining stage 1 works were completed in June 2008.

20 The stage 2 works comprised the performing arts building, specialised learning building and library-café building. These were completed in February 2009.

21 Pursuant to the Head Contract, Pindan was required to install interior floor coverings in all of the buildings. This was one of the last trades in each building. Apart from some wet areas, the flooring consisted of carpet or vinyl sheeting laid directly onto the concrete slabs.

22 On or about 20 August 2007 Pindan contracted with Seattle to supply and install the floor coverings for $311,400 excluding GST (the Seattle contract).

23 Seattle is a family-owned company which traded as Flooring Solutions. It specialised in the supply and installation of commercial floor coverings. Mr Vincent was the executive director.

24 The Seattle contract comprised a Sub-contract Agreement and attachments, Conditions of Sub-contract and Trade Conditions. It also comprised relevant portions of the Head Contract, namely the Specification and Addenda, construction drawings, the building programme and Bill of Quantities.

25 Pursuant to item 2.17 of the Trade Conditions, Seattle was required to test the retained moisture density of each slab before applying vinyl floor coverings.

26 Retained moisture is an important consideration when laying vinyl floor covering on a concrete slab because concrete is a porous substance. As a result retained moisture can migrate through and out of the concrete by hydrostatic pressure or capillary action. It can thus reach the underside of the vinyl, which is impermeable and non-porous. Having nowhere to go, the moisture can collect. It can then re-emulsify a water-based adhesive (as occurred in this case).

27 In or about early October 2007 Seattle commenced work on the administration building (which had the first slab laid) and took moisture readings in the range of 6.9% - 7.1%. These exceeded the acceptable level (5.5%) prescribed for the application of vinyl floor coverings by Australian Standard 1884 - 1984 (Floor Coverings – Resilient Sheet and Tiles).

28 Mr Vincent immediately informed Pindan of the results.

29 Upon request, Mr Vincent suggested that the slabs be treated with Aquron to remediate the problem. Aquron is a colloidal compound which is designed to permeate and react with the concrete so as to block the migration of moisture. Its use wouldallow the flooring work to proceed without delay to the overall timetable.

30 On 26 November 2007 JCY issued Superintendent's instruction number 262 (SI 262) which Pindan passed on to Seattle. This varied the Head Contract and the Seattle contract (pursuant to cl 27) to require Seattle to apply Aquron to the slabs of the administration, Kim Beazley and two middle school buildings as and where indicated by moisture test results.

31 Seattle eventually applied Aquron in all of those buildings except in wet areas where a water-resistant adhesive was used. Seattle was paid $39,400 as a variation (Trial Book 24).

32 The vinyl flooring was first laid in the administration building, part of the Kim Beazley building and the middle school (south) building between November 2007 and March/February 2008. Those buildings were then handed over to the DHW (save for the unfinished portion of the Kim Beazley building).

33 Blistering began to appear in the vinyl flooring around the edges of the north-facing wall of the Kim Beazley building in approximately April 2008. Pindan concluded that this was caused by the ingress of rainwater from verandahs that flowed towards the wall. The problem was remedied by the installation of a drainage grate along the exterior of the wall. Seattle rectified the damage to the vinyl inside the building and was paid accordingly as a variation.

34 Seattle performed the balance of the stage 1 flooring works comprising the Kim Beazley hydrotherapy area, the basketball courts and the middle school (north) in June 2008.

35 In late July 2008 Seattle returned to the Site to carry out the stage 2 flooring works in the performing arts buildings, specialised learning building and library-café.

36 All of the slabs had been laid some months prior and had had roof cover for months, with the exception of the library which did not receive roof cover until July 2008.

37 Moisture tests taken throughout the performing arts building disclosed levels between 7.1% and 7.4%. Mr Vincent informed Mr Miller on 29 July 2008. This caused considerable consternation amongst Pindan, JCY, KBR and the DHW because they had expected the slab to have naturally dried out by then.

38 Seattle was instructed to stand down on 13 August 2008.

39 On 2 October 2008 JCY requested Pindan to obtain a quotation from Seattle for the supply and application of Aquron to the stage 2 slabs subject to moisture tests confirming the need in each case.

40 The same day JCY issued Superintendent's Instruction number 488 (SI 488) which varied the Seattle Contract to require Seattle to carry out moisture testing and, where necessary, apply Aquron to the slabs.

41 In mid-October 2008 Seattle performed moisture testing which returned results in a range of 7.1% to 7.5% in all of the buildings which were subject to SI 488.

42 Seattle proceeded to apply Aquron before laying the vinyl coverings. All of that work was completed in January 2009. Seattle was paid approximately $13,000 (TB 24).

43 In February 2009 some skirting boards in some stage 2 buildings were found to be water affected, together with some adjacent areas of vinyl flooring. Pindan determined that the damage was again caused by rainwater ingress attributable to the incorrect falls of the verandahs and also by some leaking windows. Pindan rectified the defects in February and March. Seattle rectified the affected vinyl, for which it was paid a variation.

44 In about mid-June 2011 widespread blistering began to appear in the vinyl flooring in various buildings (see [112]).

45 Representatives of Pindan and Mr Vincent inspected the problem and correspondence passed between the parties regarding the cause and contractual responsibility for the remedial works.

46 Based on advice received from Dr Armand Zurhaar of Zedcon Scientific Services, Pindan formed the opinion that the adhesive had re-emulsified because of the migration of retained moisture from the slabs. In other words, the Aquron treatment had not been successful. Pindan wrote to Seattle on 17 April 2012 demanding that Seattle return and rectify the works.

47 Seattle disputed liability and declined to rectify the works.

48 Between July 2012 and January 2013 Pindan employed Malco Pty Ltd to carry out rectification work at a cost of $607,354 including GST. The reasonableness of the rectification work and the cost are not disputed.




Evidentiary principles

49 I am required to make findings on the ultimate issues on the balance of probabilities based on a body of direct and circumstantial evidence.

50 In a circumstantial case an ultimate fact is taken to be proven if the court is satisfied (ie, can infer) based on the whole of the evidence that it is more probable than not that the fact occurred or exists (Chamberlain v The Queen (No 2) (1984) 153 CLR 521, 536, (Gibbs CJ and Mason J)). By 'more probable is meant no more than that upon a balance of probabilities … an inference might reasonably be considered to have some greater degree of likelihood' than others that are open (Jones v Dunkel (1959) 101 CLR 298, 310 (Menzies J)).

51 But, being satisfied as to the standard of proof is not an arithmetical exercise. I am required to be actually persuaded as to the probability of a fact being true (Briginshaw v Briginshaw (1938) 60 CLR 336). Nor should I confuse mere conjecture with reasoned conclusion (Jones v Dunkel (305) (Dixon CJ), 309 – 310 (Menzies J)).

52 Inferences 'from actual facts that are proved are just as much part of the evidence as those facts themselves' (Jones v Dunkel (309) (Menzies J)).

53 I am also mindful that a circumstantial case which is reliant on deduction by a process of elimination is potentially fraught with the fallacy that a hypothesis is correct merely because it is the only one left. Findings must be supported by evidence and an assumption or conjecture is not evidence (Swick Nominees Pty Ltd t/as Swick Drilling Australia v Norncott Pty Ltd [No 3] [2013] WASC 173).

54 The assessment of the credibility or reliability of evidence is a multi-factorial task. The appearance and demeanour of witnesses are relevant factors, but there is a danger in too readily drawing conclusions about truthfulness and reliability solely or mainly from such considerations. Judges are encouraged to 'limit their reliance on the appearance of witnesses and reason to their conclusion, as far as possible, on the basis of contemporary materials, objectively established facts and the apparent logic of events' (Fox v Percy [2003] HCA 22; (2003) 214 CLR 118, [30] - [31] (Gleeson CJ, Gummow, Kirby JJ)).

55 It is also useful to take into account the cooperativeness and frankness of witnesses and their willingness to make concessions.

56 An expert is permitted to give evidence of an opinion (which would otherwise be hearsay) with respect to a technical, specialist or esoteric factual issue which requires expert elucidation if he or she is qualified by training or experience to do so. Opinion evidence is admissible for the purpose of assisting the court to make findings of fact.

57 Opinion evidence, and findings derived from the same, must be based upon facts or stated assumptions that are proven (or bear sufficient correlation to facts which are proven) and must be explained in such a way that the court can comprehend it and make the necessary findings, or at least understand why it should be adopted or deferred to. (Pownall v Conlan Management Pty Ltd (1995) 12 WAR 370; Pollock v Wellington (1996) 15 WAR 1, 3 (Anderson J); Beer v Duracraft Pty Ltd [2004] WASCA 192 [78] – [80] (McLure J); and Makita (Aust) Pty Ltd v Sprowles [2001] NSWCA 305; (2001) 52 NSWLR 705, [64] (Heydon JA)).

58 As with lay witnesses, the court is entitled to accept all of a particular expert's evidence, or none of it, or accept some and reject the rest, or simply put it to one side (Ramsay v Watson (1961) 108 CLR 642; 645). In this way findings can be drawn from evidence and opinions of more than one expert, irrespective of who adduced the evidence.

59 The importance of expert evidence and its weight may also depend to some extent on the degree of specialisation involved in the relevant expert field, because some fields are more esoteric than others.

60 But, I stress that the purpose of expert evidence is not to educate the court so that it may then form and rely exclusively upon its own analysis. The court cannot substitute a scientific or investigative role for its fact-finding role.

61 As will be seen, the issues in this case involve a number of technical matters. Some of these are particularly esoteric (such as the chemical properties of materials such as concrete and Aquron, and their reactivity inter se) whilst others are more accessible to a layman (such as the basic principles of hydrology).




An overview of the evidence

62 Four lever arch folders of documents were received in evidence by consent as exhibits 1 – 4 (the Trial Book). The Trial Book (TB) included plans, specifications, contractual documents, technical reports, photographs and other material. Other documents were received in evidence separately.

63 Pindan adduced oral evidence from two lay witnesses, Mr Brett Kinner and Mr Stephen Flint, and two experts, Dr Zurhaar and Mr Allan Lundorf of Golder Associates.

64 Mr Kinner was Pindan's construction manager with overall responsibility for performance of the Head Contract. He testified as to Pindan's management structure for the contract and the roles of himself and the persons who worked below him, including a contracts administrator, a junior contracts administrator, the senior site supervisor and two other site supervisors (one of whom was Mr Flint).

65 Those people all worked full-time on the Site.

66 Mr Kinner and Mr Flint were patient and respectful witnesses and appeared to confine their responses to things which fell within their expertise or experience on this particular project, and they made concessions.

67 They gave evidence as to the construction of the slabs including the laying of waterproof membranes. They were cross-examined about the possibility that defects (such as gaps and tears) were left unremedied before the concrete was poured. Without being too adamant about it, they regarded this as a reasonably remote possibility.

68 Mr Flint readily conceded that photographs of the slab preparations for the administration building (ie, before any concrete was poured) showed some tears in the waterproof membrane. He accepted (ts 404) that that sort of damage could be caused by a star picket that had held a formwork shutter in place. He stated that he 'would very much hope that got repaired before we poured'.

69 On my assessment of the evidence of Mr Kinner and Mr Flint, it is unlikely that Pindan knowingly allowed any departures to occur from the contractual requirements or proper building practice (but the possibility that some departures in fact occurred cannot be ruled out: see [103]).

70 Overall, I have a high level of confidence in their evidence about the construction of the slab.

71 My confidence is supported and enhanced by their uncontested evidence that JCY and KBR sent representatives to the Site to inspect the work in progress, and the preparations for each and every slab were inspected by an engineer before any concrete was poured. In other words, Pindan's work was checked.

72 There was evidence from Dr Zurhaar and Mr Trinder which suggested that best practice was not necessarily mandated in the drawings in relation to the coverage of the waterproof membrane. But my concern is to make findings about the as-built situation, as to which the drawings are reliable evidence.

73 For the defendant, Mr Vincent gave evidence, as well as his daughter-in-law Ms Leanne Vincent, and Mr Barry Coveney. Mr Peter Trinder of BG & E Materials Technology Pty Ltd gave expert evidence.




Further findings of fact about the works

74 I turn to make further findings relating to the construction of the buildings, problems with leaks and drainage and the timing, location and extent of the failures in the vinyl flooring. Much of this is not in dispute, but I will make findings on some contentious matters as required.




The Site and buildings

75 The Site originally consisted of a sloping, undeveloped area of approximately 4 hectares which was part of a low-lying wetland.

76 The Site was first stripped of vegetation and topsoil. It was then cut, filled with clean fill and levelled to a uniform elevation of 26.80 m AHD.

77 Groundwater was encountered in some deep excavations (more than 3 m) and pumped away. This occurred in the deepest parts of a sewer line running the length of the Site from north to south between the locations of the administration and visual arts buildings (to the east) and the performing arts, library-café and basketball courts (to the west). Groundwater was also encountered at the base of a lift pit in the specialised learning building (Mr Kinner: ts 91 – 92) and the hydrotherapy pool in the Kim Beazley building (Mr Flint: ts 386).

78 Approximately 200 concrete soakwells (1.8 m diameter; 1.2 m depth) were installed throughout the Site to drain rainwater from roofs and paved areas.

79 Concrete strip footings were then laid to support the edge of each slab (external footings). Typically external footings are 300 mm deep, but they vary up to 450 mm in some buildings and 500 mm in the basketball building (TB 1028).

80 Isolated concrete footings were interspersed to support specific structural features, such as columns. These footings were larger and deeper than the strip footings.

81 A continuous 200 micron thick waterproof membrane (overlapping plastic sheeting) was laid directly onto the soil (at 26.80 AHD) that was within the external footings.

82 In accordance with the drawings the external footings (and the isolated footings) were not laid on, or wrapped in, a waterproof membrane. The outsides of the external footings were parged (painted) with a waterproof membrane before being back-filled with soil.

83 As such, the inner-sides and bases of the external footings (and the isolated footings) now lie in direct contact with the ground soil.

84 Steel reinforcement mesh for each slab was positioned a few millimetres above the waterproof membrane. Steel cage reinforcement was used for the isolated footings.

85 The waterproof membrane was penetrated where necessary by isolated footings and plastic and copper plumbing which lies under the slab. Photographs (TB 606, 614 - 616, 617, 619, 625) appear to show that the plumbing penetrations were carefully taped to the membrane to achieve a waterproof junction.

86 Plastic conduits for in-floor services were laid between the waterproof membrane and the reinforcing mesh (see TB 625).

87 The slabs were laid 100 mm thick (ie, the finished floor level of every building is 26.90 m AHD: 26.80 plus 100 mm for the slab) except where they overlapped the external strip footings, in which case the slab-edge was thickened by an additional 200 mm.

88 In other words, the total thickness of the slab and the footing where they overlap is now between 600 mm and 750 mm (800 mm in the case of the basketball building). Bearing in mind that the top of each slab is 100 mm above ground level, the depth of footing/slab below ground level (bgl) varies from 500 – 650 mm (700 mm in the basketball building).

89 Mr Trinder contended that the drawings stipulated that the thickened edge of each slab was to be 100 mm thicker (400 mm in total), so that the slab/footing depths would vary from 600 – 750 mm bgl (800 mm bgl in the basketball building).

90 The drawings are ambiguous on this and could be interpreted as requiring the thickness of the slabs above the external footings to be either 300 mm (TB 1026) or 400 mm (TB 1028). My findings as to causation (ie, as to Pindan's hypothesis, the groundwater hypothesis or the leak hypothesis) must be based on the as-constructed situation. For unknown reasons, no-one seems to have investigated the matter on Site, so I am left to make findings based on the drawings. On the balance of probabilities I prefer the view that the drawings stipulated that the slab above each external footing was to 300 mm thick and not 400 mm. In my opinion the references to 300 mm were intended to relate to a typical slab and the sole reference to 400 mm was only given as an example of an atypical slab or, more correctly, how an atypical slab detail would be noted on a drawing. I am satisfied that the typical slab thickness above external footings is 300 mm but at the appropriate juncture I shall consider both possibilities (see [201]).

91 Each slab was left to cure (dry and harden) for several weeks after being poured.

92 The superstructures comprising steel columns, beams, rafters and purlins were built next.

93 Walls were built using hollow clad-framed panels or pre-cast concrete panels with a typical thickness of 90 or 100 mm.

94 Each building was roofed with metal sheeting.

95 Steel framed windows and doors were installed.

96 Concrete verandahs were poured at 26.90 AHD (the level same as the internal floors).

97 Suspended ceilings were installed with recessed lighting and ventilation openings.

98 Moulded (MDF) skirtings were installed at the junction of the walls and slabs.

99 Hydraulic, electrical, mechanical, painting, carpentry and similar services were installed as appropriate throughout the above-mentioned process.

100 Seattle then laid the floor treatments.




Possible damage to the waterproof membranes

101 The setting out work for each concrete pour, as well as other setting out work, had the potential to tear or puncture the waterproof membrane. For instance, based on some photographs I find that Pindan occasionally drove steel rods into the membrane to secure string-lines (TB 596, 605, 609 – 610, 612, 624 - 625). Pindan sometimes used star pickets to hold formwork in place and for other purposes (TB 594 – 595, 557, 608, 613 - 614, 616, 615 – 623, 625 - 627). I am satisfied that some of these pickets punctured the membrane. The punctures needed to be patched before the concrete was poured.

102 But there is evidence that they were not patched. Mr Trinder pointed to a photograph (TB 595) which showed concrete residue on the lower sections of some star pickets which, in turn, suggests that they had once been embedded in wet concrete to that depth. That, in turn, suggests at (ts 791 - 792, 796) that star pickets were not removed until after the concrete was poured around them, which was too late to repair any punctures.

103 That is a persuasive hypothesis. The relevant photographs appear to show that everything was in readiness for the concrete pour and it is unlikely that the supporting pickets were removed until the formwork was no longer required. I have kept Mr Trinder's hypothesis in mind, but I comment that there is no evidence that the practice of using star pickets in this way was widespread on the Site. So far as the photographic evidence as a whole is concerned, penetrations could only have occurred occasionally and on the perimeter of the slab and thus affected a very small proportion of the whole. (I would estimate a small fraction of 1%).

104 I repeat my observations at [67] – [69] above and accept that the laying of the slabs was taken very seriously. The possibility is remote that damaged or incomplete membranes went unnoticed and/or unrepaired as a matter of routine. It is most improbable that Pindan's staff and contractors, or the superintendent's and engineer's representatives, failed to attend to this appropriately as a general rule.

105 In short, whilst the possibility of an occasional lapse could never be ruled out, based on the evidence of Messrs Kinner and Flint the possibility that such occurred on a regular or widespread basis is difficult to accept and I reject it.




Concrete slab moisture levels

106 The dates of the concrete pours, installation of roof-cover (rain-protection), moisture testing (and results) and vinyl installation for each building are set out below.


Building
Concrete Pour
Roof Cover
Vinyl Install
Concrete Moisture
    Administration
    May 2007
    Aug 2007
    Nov 2007
    6.9-7.1% (04/10/07, 15/10/07)
    Kim Beazley
    Aug 2007
    Nov 2007
    Feb 2008
    7.2-7.3% (12/11/07)

    7.0-7.2% (12/07, 01/08)

    Middle school South
    Jun 2007
    Sep/Oct 2007
    Jan/Feb/Mar 2008
    7.1-7.2% (12/11/07) 6.9-7.2% (Jan 08)
    Middle school North
    Jun 2007
    Oct/Nov 2007
    Jan/Feb/Mar 2008
    7.1-7.3% (12/11/07) 6.9% (27/03/08)
    Performing Arts
    Jul 2007
    Mar 2008
    Jan 2009
    7.1-7.4% (29/07/08)

    7.2% (12/08/08)

    7.1-7.2% (15/10/08)

    Basketball
    Sep 2007
    Dec 2007
    Apr 2008
    7.2%-7.5% (01/04/08)
    Specialist Learning (ground floor)
    Sep 2007
    May 2008
    Dec 2008/

    Jan 2009

    7.1% (12/08/08)

    7.1% (06/10/08)

    7.1-7.2%

    (09/10/08)

    7.2-7.3%

    (15/10/08)

    Café/Library
    Apr 2008
    Jul 2008
    Jan 2009
    7.1% (09/10/08)

    7.5% (16/10/08)

107 It is to be noted that the retained moisture density remained relatively constant between the pouring of each slab and the installation of the vinyl, even after roof cover was provided. According to the lay and expert evidence, this was unexpected and unusual in that the density of retained moisture should fall as a slab cures, especially in dry weather or after roof cover has been provided.




The application of the Aquron

108 Mr Vincent gave uncontested evidence about the application of the Aquron and I make the following findings:


    (i) Each slab was swept and tested with water to identify any high spots. These were then ground down by a contractor engaged by Pindan.

    (ii) The surface was sanded and watered to provide preliminary hydration of the concrete.

    (iii) The slab was measured into 100 m2 sections.

    (iv) Once the water had dissipated 20 litres of undiluted Aquron was sprayed in two passes at right angles to each other so as to ensure an even spread (ie, 20 litres per 100 m2).

    (v) No problems were encountered with either the hydration of the concrete or the absorption of the Aquron.

    (vi) Occasionally a small quantity of Aquron pooled in a low spot. This was left for 20 – 30 minutes to be absorbed into the slab. Any remaining Aquron was swept around with a broom until it dissipated or was absorbed into the slab.





Water damage caused by leaks

109 It is apparent from the evidence (most notably Mr Trinder's second report) that best practice was not employed in connection with waterproofing the outer walls of many of the buildings. It is also apparent that there were a number of problems with leaking roofs.

110 Based on the evidence as a whole, particularly that of Mr Kinner, I find that flooring was affected by water from external leaks in 2008 and 2009 as follows:


    (i) The administration building: The conference room, offices and the disabled toilet. Only the last had vinyl flooring.

    (ii) The performing arts building: The property and chair store (carpet).

    (iii) The Kim Beazley building: Vinyl flooring blistered around the perimeter walls in classrooms 1 and 2 (near water-damaged skirtings), in the activity area in several places, in the western foyer entrance and adjacent to doors in the north wall of classrooms 3 and 4. These leaks were caused by poor external drainage and gaps in doors and flashings. There were also leaks through the roof and light diffusers in classrooms 1 and 4.

    (iv) The middle school (north): In the D & T room (vinyl), staff room (carpet) and a female toilets (tiles). These leaks came from the roof.

    (v) The middle school (south): The staff, planning and collegiate areas, classrooms 3, 6 and 8, all caused by roof leaks. None of these areas had vinyl flooring.

    (vi) The library-café: The resource area, inside the main entrance, inside the media viewing room and in the food preparation area of the café (Ms Vincent testified about this). All of these leaks came from the roof. The café had vinyl flooring.

    (vii) The basketball courts: Vinyl in the northern entrance. These leaks came through door flashings when rain fell from a particular direction.

    (viii) The specialist learning building: Vinyl in food studio 1 and carpet in the staff study. These leaks came from the roof.


111 All of the damaged vinyl was repaired or replaced at the time. None of the abovementioned areas is proximate to an area where the vinyl was found to be blistering in 2011, except for the toilet in the administration building which was adjacent to a server room, all of the areas in the Kim Beazley building, and food studio 1 in the specialised learning building.


Areas where vinyl was found to be blistering in 2012

112 By reference to the evidence of Mr Kinner read with exhibit 8, and the structural drawings, I make the following findings as to the areas where vinyl flooring was found to be blistering in 2011. The combined slab and external footing depths (slab-footing depths) are included:


    (i) The administration building: An area adjacent to a toilet and a storeroom. I estimate that this represents slightly less than 50% of the vinyl flooring in this building. The slab-footing depth is 600 mm.

    (ii) The performing arts building: All of the vinyl in the foyer and passages, representing approximately 90% of the vinyl in the building. The slab-footing depths are 650 mm, save for two which are 600 mm.

    (iii) The Kim Beazley building: All of the vinyl in classrooms 1, 2, 3, 4 and 5, the lifeskills and activity areas and all passageways. This represents about 75% of the vinyl flooring in the building. There is a photograph at TB 888. The slab-footing depths are a combination of 600 and 650 mm, with one 700 mm.

    (iv) The middle school (north): All of the vinyl in activity areas 1 and 2 and the science area, representing approximately 70% of the vinyl in the building. The slab-footing depths are a combination of 600 and 650 mm.

    (v) The middle school (south): As for the middle school (north).

    (vi) The library-café: Part of a passageway adjacent to student services and the nursing station, representing approximately 5% of the total. There are no adjacent footings.

    (vii) The basketball building: Nil, but there is virtually no vinyl flooring.

    (viii) The specialised learning building: All of the art gallery, food and technology planning and studio 1, and the areas connecting them, representing approximately 60% of the total on the ground floor. The slab-footing depths are mostly 750 mm with two of 650 mm.





Slab moisture densities in 2011 – 2012

113 The moisture densities of the slabs in the Kim Beazley, middle schools north and south and performing arts buildings were tested in October 2011 and found to be 7.2%, 6.9%, 7.2% and 7.2% respectively (exhibit 12, ts 688) which is commensurate with the results which were obtained in 2007 – 2008. This supports an inference (which the experts basically adopted) to the effect that the slab moisture densities did not change significantly between 2007 and 2011.




Pop-outs

114 Some of the vinyl flooring (including the replacement flooring) has been damaged from time to time by 'pop-outs' in the slabs. There is no claim against Seattle or Mr Vincent arising from this problem which has never been significant, but there was evidence about its relevance to the cause of the vinyl blistering.

115 Dr Zurhaar explained (ts 445 – 456) that pop-outs are caused by the interaction of moisture and small clay agglomerations in the concrete. The moisture causes the clay to swell and, if it is close to the surface, the clay will follow the line of least resistance and force its way through. This causes a conical lump no wider at its base than a 10 cent piece. It is not necessary for the moisture content of the concrete to be excessive - the phenomenon can occur in concrete with a moisture density less than 5.5%.




Flooding in the southern car park

116 Evidence was given by various witnesses (especially Ms Vincent) about flooding which occurred in the car park adjacent to the Kim Beazley building during heavy rainfall events prior to mid-2011. I find that this was caused by blockages in the soakwells in that area rather than groundwater movement, although the problem would have impacted on groundwater mounding in the area.




The expert evidence




Sorption testing by Boral Materials Technical Services

117 A senior development engineer employed by Boral Materials Technical Services (Mr Tony Song) carried out sorptivity tests on core samples taken from the slabs of the Kim Beazley building (classrooms 3, 4 and 5 and the lifeskills area). 'Sorptivity' refers to the rate at which a substance will absorb moisture.

118 The test method was as follows:


    (i) The slab was cleaned and ground back to remove residues of the adhesive. Six viable cylindrical cores were removed. (Other attempts failed).

    (ii) Each viable core was saw cut crossways in half to produce two cylindrical sub-samples (A and B). Each sub-sample was wrapped in waterproof material save for one end which was left exposed.

    (iii) The exposed surface of the A sub-samples corresponded with the original surface of the slab. The exposed surface of the B sub-samples corresponded with the middle of the slab (where the saw cut was made).

    (iv) So, there were now 12 sub-samples, each of which could absorb water through a circular surface which sought to replicate (in the case of the A samples) the true surface of the slab before any adhesive was applied and (in the case of the B samples) a horizontal plane at a depth approximating the middle of the slab.

    (v) Each sub-sample was weighed and then immersed in water to a depth 2 mm above the exposed surface.

    (vi) The sub-samples were removed at regular intervals and re-weighed. The differential between the weight and the previous weight on each occasion represented the mass of water absorbed by the sub-sample during the interval.


119 The results after immersion for 60 minutes and 8 days are set out below:

Increased Mass(g) of A samples v B Samples

    Elapsed Time
    Core 1
    Core 3
    Core 5
    Core 7
    Core 9
    Core 11
    60 minutes
    0.97 v 4.58
    1.38 v 4.52
    0.98 v 3.68
    1.04 v 4.15
    1.58 v 4.27
    0.92 v 4.22
    8 days
    23.23 v 22.24
    18.36 v 24.03
    17.88 v 22.10
    9.86 v 23.08
    22.43 v 24.11
    10.11 v 25.35

120 These results establish that all 12 sub-samples were absorbent to water, but at differential rates as between the A and B groups, particularly in the first 60 minutes. The uptake of the B sub-samples in the first 60 minutes exceeded that of the A samples by a ratio of approximately 4:1. In other words, the lower part of the slab from where each core was taken was approximately four times more absorbent than the upper half over that period.

121 The differential fell markedly after eight days. Over that period the sorptivity of four B sub-samples was very similar to the A sub-samples and approximately 2.5:1 for the other two cores. I comment that this seems to illustrate what would happen if the groundwater hypothesis was correct, that is Aquron treatment would not prevent moisture being absorbed into and through the concrete.




Mr Lundorf's evidence

122 Mr Lundorf is a water resources engineer employed by Golder Associates. He has extensive qualifications and experience in hydrology and hydro-geological matters, including eight years' experience in relation to groundwater and dewatering assessments at sites across the Perth metropolitan area.

123 He produced a report dated 19 November 2014 which addressed the groundwater hypothesis and in particular whether 'the groundwater level at the Site is capable of rising to a level that causes it to come into contact with the underside of the concrete slabs'. He also gave oral evidence.

124 His evidence was not contested, although he was questioned closely about it in cross-examination.

125 Mr Lundorf attended the Site, did field work and carried out an extensive amount of technical research. He approached the issue from numerous angles and carefully collated and cross-referenced the available data and his findings. His report is thorough and easy to follow.

126 Amongst other things, Mr Lundorf took into account historic rainfall data and other technical assessments of the same (including synthetic or inferred rainfall records), geotechnical investigations of the Site which were carried out before construction commenced, groundwater atlases which represent the inferred groundwater level contours in the Perth metropolitan area from time to time based on historically observed levels. He took into account hydrological records of the West Australian Department of Water and the results of his own field work at the Site.

127 The salient features of his analysis of the data are as follows (remembering that the slabs were laid on ground at 26.80 AHD):


    (i) There is a superficial aquifer approximately 46 m below the Site.

    (ii) The Perth Groundwater Atlas (1997) suggests that historically the maximum (ie, wet season) groundwater contours of the Site are between 25m AHD and 26 m AHD, with groundwater levels being lower in the western part of the Site (ie, where the Kim Beazley and middle school north and south buildings are located).

    (iii) The 2004 Groundwater Atlas infers or suggests that the dry season groundwater level contours at the Site range between 22.8 m AHD at the western boundary to 23.1 m AHD at the eastern boundary.

    (iv) The 2006 geotechnical testing of the Site suggested that observed ground water levels in January of that year were between 23.4 - 24.45 m AHD.

    (v) Standpipes which he installed at the Site in November 2014 disclosed that the soil was moist at a depth of between 0.9 m - 1.2 m below ground level, which indicates that the soil was moist (the moisture zone) from between 0.26 m - 0.73 m above the measured groundwater level. The results should be considered with caution because two of the standpipes were located in close proximity to soakwells. The lowest moisture increase (0.26 m) was located furthest from any soakwell. These results are consistent with water 'mounding' in the immediate vicinity of soakwells. In evidence Mr Lundorf explained that the moisture zone (above the groundwater level) could be due to capillary rise (explained at [128]), but said that it could also be residual moisture left as the water table receded after winter. He discounted any recent rainfall recharge since there had been no rain within the previous 10 days.

    (vi) Hydrographic records for the area (which were incomplete owing to urban development) indicated that seasonal groundwater level fluctuations ranged between 1.0 m and 1.5 m. In Mr Lundorf's opinion the fluctuations were consistent with rainfall patterns with generally higher peak groundwater levels in the wetter years and lower peaks in the dry years. He said that 'rainfall is one of the main drivers for changes in groundwater level'.


128 Mr Lundorf carried out a technical analysis of the data and said (all emphasis and intercalations in these reasons are mine except where noted otherwise):

    The estimated site groundwater level hydrographs … indicate that in terms of true groundwater level across the site and excluding localised mounding or variations around soakwells:

    • The maximum groundwater elevation at the site over the period from 2006 to 2014 would be up to RL 25.5 m AHD, which is 1.3 m below the general current ground surface.

    • The groundwater level over the period from 2006 to 2014 has not reached the ground surface and thereby the ground floor slab of the buildings. The closest that the groundwater level has come to the base slab is between 1.3 m and 1.5 m below [the] underside of the slab, which is what would have occurred in the wet seasons of 2008, 2009 and 2013.

    • The estimated groundwater level in June 2011 when the vinyl floor blistering was observed would have been around RL 24 m AHD, which is 2.8 m bgl.

    Soil above the groundwater table [ie, part of the moisture zone] will be saturated for a certain height due to capillary rise in the voids between the soil particles. The height of capillary rise is controlled by the soil particle size, with greater heights of rise occurring in finer grain soils. Based on the soil description and the permeability calculations [for the Site], suggesting granular and highly permeable soils below the ground floor slabs, [I] would not expect a capillary rise greater than 0.5 m at this site. With such a capillary rise, capillary water would also not have reached the underside of the base slab.


129 Mr Lundorf then considered how the infiltration of rainfall run-off through the soakwells would affect his opinion. Having set out a number of assumptions which I am satisfied are generally reliable and which were not significantly challenged, Mr Lundorf said:

    The results indicate that the groundwater level rise from local mounding due to the soakwells ranged between 0.05 m and 0.30 m beneath any of the buildings. Based on the soakwells configuration and assumptions the highest groundwater level rise was modelled to occur along the southern side of the Kim Beazley building (0.3 m rise), in the north-eastern corner of the Kim Beazley building (0.25 m rise) and south south-eastern corner of the south block (0.25 m rise). It should be noted that the water distribution between all soakwells would unlikely be uniform, which could result in greater mounding around some soakwells which receive a greater proportion of the piped inflow.

130 Having noted that his analysis demonstrated that 'the greatest risk of groundwater, capillary water or soil moisture reaching the underside of the building slabs would be in the areas of the buildings that are closest to the soakwells', Mr Lundorf proceeded to correlate the evidence about the location of the soakwells to the areas in which vinyl blistering had occurred in the Kim Beazley building, the middle school south and north buildings and the performing arts, media and music building. He noted that some of the affected areas were located in the vicinity of soakwells but many were 'at a further distance' or 'not in close proximity' to the soakwells.

131 He concluded that 'local mounding would not result in a localised increase of the groundwater level up to the underside of the ground floor slab assuming that the rainfall run-off is equally distributed over the soakwell system and that all soakwells are functional'.




The evidence of the materials experts

132 Dr Zurhaar has a degree in Applied Science and Applied Chemistry (with Honours), a Masters degree in Applied Science and a PhD in Applied Chemistry. He has operated a materials science consultancy for 29 years and has sometimes lectured at Curtin University. He has expertise and experience in relation to the physical and chemical properties of concrete, waterproofing materials and polymer science. The lattermost gives him specialist knowledge of the properties of adhesive products such as the acrylics and polyurethane adhesives that are used in vinyl flooring and also polymer composites such as vinyl flooring. He summed up his qualifications as follows (ts 430):


    So I believe I have a sound knowledge base by not just the individual materials involved [in this matter] but on their interaction with each other as a whole.

133 Mr Trinder is an engineer specialising in materials technology. He holds a Bachelor of Engineering (Honours) and post-graduate qualifications in management. He has worked in the construction industry since 1978, but has specialised in materials technology since the 1980s. He has provided specialist advice and consultancy services in relation to concrete technology, repairs and rehabilitation. He is currently the principal of BG&E Materials Technology Pty Ltd.

134 For reasons which will become apparent in due course, I prefer Dr Zurhaar's technical expertise and explanations and therefore accept his evidence where it differs from that of Mr Trinder on the important issues.

135 Based on the evidence of Dr Zurhaar and Mr Trinder (and Mr Lundorf), I begin by making some basic findings about technical matters and principles which are not in dispute (I have cited the evidence that I have accepted where there were material differences):


    (i) From a hydrological point of view water (as liquid or vapour) can move in three directions, up, down or sideways, unless it is prevented from doing so by a waterproof barrier or consumed by a chemical reaction of some kind. A sponge is a partial barrier.

    (ii) Concrete is a porous substance and acts like a sponge when it comes into contact with water. In the absence of a waterproof membrane, moisture which comes into contact with the bottom of a slab (sponge) can migrate into and/or through it by two processes. Lay persons would know this as rising damp. Assuming a 100 mm thick slab, capillary suction will draw it in to about 50 mm. At that point the moisture can vaporise and move by vapour pressure to areas of lower pressure. Given that concrete is a homogeneous substance, over time the water (as liquid or vapour) will establish an equilibrium or uniform density throughout the slab. In layman's terms, it flows about. Thus, for example, moisture which enters from the underside can eventually spread throughout and, if there is enough, reach the surface where it will collect as a vapour if there is an impermeable barrier on the surface. Under certain conditions and in suitable quantities it will revert to liquid form.

    (iii) The movement of water within a sponge will ebb and flow depending upon prevailing conditions and forces. So, as the water density of a material that is in contact with the bottom of the sponge falls, so will the water density of the sponge (slab). The speed of the process will depend upon various factors including the porosities of the sponge and the water bearing material underneath.

    (iv) Surface moisture on concrete may react with another substance on the surface (such as a water-based adhesive) or evaporate into the atmosphere if there is no barrier.

    (v) Seattle used a water-based acrylic adhesive which was spread on the concrete surface with a notched trowel. The adhesive bonded to the concrete as it dried (ie, as the water additive evaporated). As it was laid the vinyl bonded with the remaining adhesive until no interstitial space remained between the vinyl and the concrete.

    (vi) Seattle used a two-pack polyurethane adhesive in wet areas where vinyl flooring was laid. Polyurethane adhesives are not water-based. They are thus water resistant and act as a waterproof barrier in their own right. The application of an adhesive of that kind in the non-wet areas would have prevented free moisture from migrating out of the slabs and stopped the blistering from occurring.

    (vii) Dry cement is a complex mix of chemicals and substances including calcium silicates, calcium aluminosilicates and calcium aluminates. The addition of water to cement initiates a hydration reaction whereby the components react with each other and gradually form a hard mineral composition known as concrete. Dr Zurhaar called the hardening process 'curing' (ts 474) and I shall use that terminology.

    (viii) At saturation level wet concrete contains approximately 8.4% water. This density declines during the curing process (ie, as the water is consumed by the hydration reaction and by evaporation through the surface and into the atmosphere if conditions are favourable).

    (ix) Concrete is considered to be cured within 24 hours of being poured. The cure is 95% or more complete within the first seven days of the pour and most of the remaining 5% occurs progressively for 28 days. Concrete is considered to have finished curing for all practical purposes after 56 days. (Dr Zurhaar ts 437).

    (x) The moisture content of a concrete slab remains high if it is exposed to water and only begins to dry out significantly in dry conditions (ie, dry weather and/or after being enclosed). Excess moisture will migrate from an uncovered 100 mm slab (evaporate through the surface) at a rate of 25 mm per month under dry conditions. It will achieve an acceptable density (less than 5.5%) after four months.

    (xi) Calcium hydroxide is a by-product of the hydration reaction and remains captured within the concrete.

    (xii) The calcium hydroxide can react in the concrete with carbon dioxide from the atmosphere (a process known as 'carbonisation'). Carbonisation is retarded whilst concrete is wet because the free water molecules act as a physical barrier that inhibits the diffusion of carbon dioxide into the slab.

    (xiii) Carbonisation starts on the surface and progresses into the slab at a rate of 1 – 2 mm within the first 12 months of the slab being poured, assuming the retained moisture content has fallen to 7%.

    (xiv) 'Aquron' is the proprietary name of one of numerous brands of colloidal silicate product used in the concrete industry. Dr Zurhaar explained (ts 436):


      … [A] colloidal … contains microscopic sized particles which are designed to penetrate into the pores of the concrete, react with the concrete body itself and effectively densify the concrete. So [the] principle is that moisture and voids within the concrete are locked up and densified such that [it is] … much harder for the water to get out of the concrete … . It does, however, rely upon a mechanism of penetration and … complete filling of voids in order to form a sufficiently dense material to be considered waterproof.

      [T]he principle here is that this is a water-based chemical solution that is sprayed onto the concrete and relies upon the concrete's absorption ability to soak in, find the pores, react with the concrete and stay put and lock up the pores and at the same time lock up any moisture that's in those pores. There is a complex chemical reaction which occurs between the … colloidal solution … and the concrete matrix itself. … [It is] simply a case that the fresher the concrete is, the more reactive the concrete is and the more reactive it will be to an applied product. Whereas when the concrete has reached full cure it is less reactive to applied materials.


    (xv) The densification or 'complex chemical reaction' involves a reaction between the colloidal silicates and calcium hydroxide and other alkali components in the concrete. I have emphasized the words 'much harder' at (xiv) above to imply my understanding that the densification process does not create an impermeable barrier (unlike plastic or vinyl sheeting). Rather, densification causes the concrete to become highly resistant to moisture. This is consistent with Dr Zurhaar's evidence (see [146] and ts 464) about the results of the sorptivity testing of the A sub-samples: although they were found to be absorbent to water, the Aquron had 'worked' in those sub-samples.

136 Dr Zurhaar prepared two reports. The first, dated 26 March 2014, was in substance a re-issue of a report which he provided to Pindan on 2 May 2012. His second report dated 9 April 2015 was prepared in response to Mr Trinder's first report.

137 The first report was based on an inspection of the Kim Beazley building and the middle school north and south buildings on 28 February 2012. Dr Zurhaar found (ts 431):


    [Evidence] of broad-faced blistering in the corridors and rooms associated with the newly installed vinyl in those buildings. … There was some localised water ingress problems near doors and windows but [this was] quite different to [where] … there was a problem with the installation of the sheet vinyl through the area.

138 Typically the blisters had a diameter of 15 – 20 cm and a height of 5 - 10 mm. There was no pattern. Blisters 'were randomly scattered throughout the floor area but probably larger towards the centre of the walkways than they were near the walls' (ts 432).

139 Dr Zurhaar testified (ts 433 – 434) that he has seen blistering of this type in vinyl floors on more than 50 occasions and explained the process as follows:

It's a situation where the moisture content within the concrete subfloor is at too high a level to accommodate the vinyl flooring. The vinyl goes down with an adhesive layer … and the vinyl over the top of it. You have a temperature differential above internally in rooms. It's warmer and it's hotter and water that's residual water that's within the concrete can't go down because you have a membrane underneath it to the ground. So it goes up in the direction where the temperature differential is warmer and it gets driven out of the pad by airconditioning and use of the rooms. [But] it can't get through the sheet vinyl because [vinyl is] … a polyvinyl chloride. … a PVC sheet … has the same low water permeability as the membrane that's underneath the concrete pad. … In essence [the moisture] goes in the direction of least resistance. It emulsifies the adhesive which means that the vinyl no longer has adhesive to hold it in place. And then because of the temperature difference it develops into water vapour under there and increases – it's what we call hydrostatic or water vapour pressure which then stretches the vinyl and causes the vinyl to develop up as a … blister.


140 His opinion was summarized in the following passage in his first report:

    The moisture causing the blistering is either residual moisture from within the concrete slab or it has been introduced from an external source such as cleaning processes. The moisture could not have resulted from an external source given the amount of water involved to re-emulsify the adhesive and create the blistering and given the extent of blisters that are present in the centre of large floor areas.

141 The groundwater and leak hypotheses were first raised in a report of Mr Trinder. Dr Zurhaar dealt with them in his second report.

142 Having regard to the density readings which were obtained from time to time and the dates on which the various slabs were poured and the subsequent weather conditions, he believed that many, if not all, of the slabs did not have sufficient exposure to suitable drying conditions. He therefore found that the elevated readings were consistent with the presence of excess retained moisture.

143 He testified (ts 477, 521, 525) that the fact that moisture densities had ostensibly not changed from November 2007 to October 2011 (see [113]) was inconsistent with water ingress from an underlying water table. In his opinion the water content would increase, not remain constant, and would escalate to 8% or more if the slab was saturated.

144 From the standpoint of the relevant chemistry, Aquron was not a suitable application to deal with the excess retained moisture because the slabs had already cured when it was applied. In his opinion the Aquron could not adequately penetrate the slab and could not chemically react with sufficient constituents to create a waterproof barrier. He said that colloidal silicate treatments were developed to treat new or fresh concrete surfaces. He said (in his second report):


    The chemistry of its action on concrete results in the colloidal silicate being most effective on new concrete that is still under-cured where molecular mobility and reactivity are still at its greatest. … The product will also have efficacy in aged concrete that is several months or years old but to a lesser extent than in fresh concrete. … I would not have recommended the use of a colloidal treatment system that relies upon penetration and chemical interaction. In this situation, I consider the use of a surface membrane product such as a liquid acrylic, epoxy or polyurethane to be more suitable as it does not rely at all upon penetration (porosity) or the chemical state of the concrete.

145 He said in evidence (ts 473):

    Aquron needs to react with the free calcium hydroxide and alkali components of the concrete to form this compressed densification that happens … [So] it's quite a logical thing that the fresher the concrete the more free and reactive components … But once you get beyond your 56 days cure there's not a whole lot of reactivity left.

146 Notwithstanding some reservations about the relevance of the sorptivity test methodology and results, in his opinion the results were useful because the water was initially absorbed significantly faster into the B sub-samples compared to the A sub-samples. In Dr Zurhaar's opinion this showed that the Aquron had penetrated the upper half of each core but not the lower half. If replicated across an entire slab, that would suggest that the lower half of each slab remained porous and charged with free retained moisture (ts 464).

147 He concluded (ts 461) that the Aquron had 'inhibited migration [but it had not] stopped the passage of water through the slab' and (ts 479) that there had only been 'a reduction not an elimination' of the porosity of the concrete. He said that it is 'essential that the passage of water through the concrete is completely eliminated whether that's through it, into it, out of it. It's important that the concrete cannot migrate water'.

148 Dr Zurhaar was dismissive of the groundwater and leak hypotheses. He said that they are not capable of explaining the observed blistering and are excluded by the absence of collateral damage where it would be expected if the hypotheses were valid.

149 As to the groundwater hypothesis, he accepted (ts 482 – 483) that a single season of contact with groundwater would be sufficient to saturate a 100 mm slab in the absence of a waterproof membrane. But the membrane would need to be wholly missing or significantly compromised to cause the failures seen in this case. He said (ts 483 – 484):


    To create the broad-face failures that have happened over the large area that it's happened you would need to have breaches in the membrane everywhere such that the … whole underside of the slab is soaking wet. If you have a localised breach in a membrane that, I have seen in my experience, would translate to a localised [problem] – something of the diameter of a metre in the surface being affected. So you could see a slab that's been exposed to ground water from a breached membrane. If it's a localised breach that would not radiate any further than about a metre diameter in the surface of the slab. In order for the … blistering that occurred here which is over many, many square metres you would either have to have a missing membrane or a membrane that was completely perforated in dozens of locations such that you then had the equivalent of the whole of the slab being in contact with water. … [It would be necessary for the slab to be in contact with groundwater for] months in terms of winter months.

150 Dr Zurhaar did not approve of the absence of waterproof membranes under and around the external strip footings (ts 527), but he felt that such was not relevant because, in his opinion, groundwater adjacent to the underside of the footings could not have migrated through the footings (ie, rising damp) and then laterally through the slab to the extent necessary to cause the broadface blistering. He said that it would take many years to dissipate laterally to the required extent (ts 477).

151 As to the leak hypothesis, Dr Zurhaar accepted that leaks had caused re-emulsification and blistering on the perimeters of certain rooms (he observed it himself in February 2012), but he was adamant that this had nothing to do with the widespread blistering. In his second report he said:


    The sheet vinyl was broad-face bonded to the concrete with an acrylic adhesive that had been applied with a standard notched trowel technique. The bond between the surfaces is complete until the adhesive is degraded from water exposure. This does not facilitate the migration of water over extended distances. I do not agree that it is possible for rainwater to penetrate to the centre of corridors and rooms, even if it were able to penetrate the external walls or fixtures. The volume of rainwater that would be required to extend such distances and cause blistering damage would also cause visible and extensive damage to susceptible materials at the building perimeters [including] … gyprock and plaster walls, as well as paint finishes and any MDF timber skirting [ie, collateral damage].

152 In evidence he said (ts 497):

    I've never seen moisture ingress from the perimeter of a building extend itself such that several hundred square metres of vinyl flooring is so wet that the glue is entirely emulsified.

153 He rejected the proposition that this could be a self-perpetuating process and said (ts 495):

    But [the process is] consuming water as the front advances because the adhesive holds the water, which is why it's a paste. It doesn't just get past the adhesive, it is actually interacting chemically with the adhesive and … turning it back to what it was in the bucket before you put it down. So you are consuming water in that process, not just allowing it to pass …. It'll hit the glue. It'll … emulsify the glue and there's not enough to go any further.

154 Dr Zurhaar summarized his opinion in relation to the groundwater and leak hypotheses in his second report:

    With respect to either [the groundwater hypothesis] or the rainwater exposure proposition, if the ground level was subjected to excessive water from either source, it would create a 'rising damp' situation in all materials, including the walls. There is no evidence of this occurring to the prevalence and extent associated with either mechanism, and no evidence of any extensive water damage from such circumstances to any of the construction materials (paint, plaster, masonry, gyprock).

    Both … propositions are entirely unsupported by physical evidence on site and the test measurements that have been carried out.

    In my opinion, the most probable mechanism by which moisture has caused damage to the sheet vinyl flooring is residual entrapped moisture originating from the concrete pour. This is supported by the physical evidence on site and the moisture content of the concrete and the behaviour of the surrounding construction materials.


155 Dr Zurhaar advanced two hypotheses as to why the Aquron failed (ts 535 – 536). First, because it did not penetrate far enough into the slab or, secondly, because insufficient amounts had been applied. (The latter can be discounted given Mr Vincent's evidence).

156 He accepted (ts 439) that the Aquron worked to some extent having regard to the fact but that the moisture content must have been uniform through each slab but blistering did not occur everywhere.

157 Mr Trinder prepared two reports which were received in evidence (save for some inadmissible passages). The first report was dated 8 July 2014 and was based on documentary evidence (ie, Site-unseen). Subsequently he was provided with other materials, including Dr Zurhaar's second report, and he carried out a Site inspection in March 2015. His second report was dated 14 May 2015.

158 Mr Trinder testified that the groundwater hypothesis was capable of explaining the re-emulsification of the adhesive. Contrary to Dr Zurhaar, he contended that the absence of a waterproof membrane under the exterior strip footings and the isolated footings and/or ruptures in the membrane itself (where it existed) would be sufficient to support the groundwater hypothesis. He said that such conditions would have been sufficient to create 'viable pathways' for any groundwater which was adjacent to the footings and/or slab to migrate into and across it.

159 In his second report he said that:


    The failure to extend the vapour barrier [ie, the waterproof membrane] up the sides of the slab and the design decision to remove the step between internal and external surfaces [ie, poor waterproofing of the exterior walls] greatly increases the risk of external surface water and ground dampness to penetrate the external envelope leading to elevated moisture within the internal concrete slab.

160 In his opinion the whole process could have occurred over a period of only a few months if suitable groundwater conditions existed. (Dr Zurhaar agreed). He noted that there was no evidence of any build-up of mould or dirt between the vinyl and the concrete slab which was inconsistent with 'any long term disbondment between the concrete and the vinyl'. In other words, the failure mechanism could have commenced as late as the first half of 2011.

161 He acknowledged (TB 994) that he was not qualified to proffer an opinion as to whether suitable groundwater conditions existed in 2011. Nevertheless, he contended (TB 870) that the water table in the vicinity of the school is 'only' 1 – 2 m below natural ground level in the vicinity of the school. He also pointed out that Bureau of Meteorology data for the three weather stations in the immediate vicinity (TB 867) shows that the first six months of 2011 were substantially wetter than the same period in 2009 and 2010. Thus conditions which were suitable for the groundwater hypothesis could have developed by mid-2011.

162 Mr Trinder also said that any cracks in the surfaces of the slabs would have facilitated the migration of water. He pointed out at least two cracks in the slab for the specialised learning building (see photographs at TB 1004) and opined that similar cracking 'would be expected' throughout the building and other buildings.

163 Mr Trinder noted that the moisture density of all of the slabs remained at or about 7% with no noticeable reduction over time. He testified (ts 855) that he would expect that the density in buildings which had been sealed for a longer period than others (the stage 2 buildings) would been lower or fallen, but that was not the case. In his opinion this (and the presence of pop-outs in the replacement vinyl flooring in 2015) suggested that there was 'an ongoing source of moisture coming in contact with the concrete'.

164 He acknowledged that the sorptivity tests suggested that Aquron was not operating in the lower half of each core, but contended that, based on the results, 'it would appear that the Aquron [had] been effective in reducing the surface absorption of the bulk concrete to a significant extent' (TB 869) and that the Aquron had been very effective on the top surface. It had thus (ts 864) 'significantly reduced the water permeability through the concrete' and had been 'very effective in reducing the rate of water movement through the concrete to the top surface'.

165 He contended that, if such had not been the case, the moisture in the concrete would have reacted with the adhesive quickly, and there would have been a 'significant failure' of the vinyl flooring 'very soon after installation' (ts 866 - 867). I understand this proposition to be common ground among the experts and, I extrapolate, a relatively small amount of evaporation through the surface would have initiated the re-emulsification process.

166 He testified (ts 870 – 871; see also ts 858 - 859) that the Aquron seal would have continued to work but for the introduction of additional groundwater sources into the concrete. He said that 'if there was no additional moisture being introduced into the system … [the slabs] would have very slowly dried out'. That is, '[retained] moisture content would have gradually reduced'.

167 Mr Trinder accepted that products such as Aquron should preferably be applied at a relatively early stage after the concrete is poured, but in his opinion conditions remained favourable for longer in this case because the slabs remained moist for longer. As a result the rate of carbonation would have been slower than usual which, in turn, left relatively elevated amounts of free calcium hydroxide available for reaction with the Aquron (see [135](xv)). He said in his first report:


    As Aquron is a penetrating colloidal silicate it acts to neutralise water movement and densify the concrete by reacting with calcium hydroxide and other alkaline materials within the concrete to form complex hydroxides. Therefore to be effective Aquron must be applied to concrete before the natural carbonation of the concrete has resulted in a reduction in the natural high pH of the concrete. As the concrete was around 12 months in age and had a high moisture content the rate of natural carbonation would be slow and it would be expected that the pH of the concrete would remain acceptable for the application of the Aquron product.

168 He testified (ts 861) that there would have been 'very little' and 'negligible' carbonation in this case because the slabs remained moist.

169 As to the leak hypothesis, in his first report Mr Trinder said that he would anticipate that the distribution of blisters would be predominantly around the edges of each building if leaks were the primary source of moisture. In other words, he acknowledged that the leak hypothesis would be unlikely to account for re-emulsification away from the edges of the slabs.




Findings in relation to the cause of adhesive re-emulsifying

170 I turn now to make findings in relation to the cause of the adhesive re-emulsifying. I begin by making some preliminary observations in relation to the weight to be attached to the evidence of Dr Zurhaar and Mr Trinder where they differed.

171 First, Dr Zurhaar has high level qualifications and experience in relation to all relevant fields, whereas Mr Trinder is not an industrial chemist. This causes me to lean towards Dr Zurhaar in relation to the properties of colloidal silicates and their interaction with concrete, whilst not overlooking that Mr Trinder was qualified to express an opinion.

172 Dr Zurhaar was a very impressive witness. He gave his evidence in a direct, confident manner and was basically unimpeachable in cross-examination. His opinion and reasoning were consistent throughout and predicated a single theory.

173 On the other hand, there were aspects of Mr Trinder's evidence, and the way he gave it, that caused me some concern about his expertise, thoroughness, independence and helpfulness. I shall explain (some matters overlap).

174 As for his technical expertise, in both reports he assumed (presumably based on instructions) that pop-outs had been one of the main reasons the vinyl flooring was replaced, that is, they were part of the widespread failure mechanism. That assumption was simply not correct as a matter of fact, but Mr Trinder's acceptance of it as late as March 2015 is noteworthy. I accept Dr Zurhaar's evidence that pop-outs can occur in concrete of any moisture density (including normal) and their occurrence is common but rarely widespread. It seems to me that Mr Trinder should have queried his instructions if they predicated that the widespread occurrence of pop-outs was a significant cause of the adhesive re-emulsifying.

175 The same criticism applies to his thesis ([163]) that the occurrence of pop-outs before and after the vinyl was replaced indicated that the moisture content of the slabs had remained high. Whilst the conclusion was correct (it was common ground), the reasoning was not correct given that the presence of excessive moisture is not indicated by the occurrence of pop-outs.

176 In cross-examination Mr Trinder accepted (ts 896) that he would expect the water density of the slabs to be greater than 7.2% if the undersides had been in contact with the groundwater table. But that was never found to be the case, including in late 2011 when the water table would be higher than in the first half of the year. He dealt with this by contending that a density of 7.2% would be consistent with the underside of the slab being in contact with the less dense moisture layer above the water table. Apart from the fact that that is not supported by the hydrological evidence, in that case the moisture density in the slabs (sponge) would rise and fall with the moisture zone as the latter moved. Perhaps that is what did occur and the similarity of the 2011 readings with the 2007 - 2008 readings is just a coincidence. I very much doubt it.

177 Next, Mr Trinder pointed to objective evidence which he considered supported his opinion, namely collateral damage to skirting boards and the like, or photographic evidence of possible penetrations of the waterproof membrane, or two cracks in one slab, but failed to give sufficient weight to the absence of widespread collateral building damage (such as rising damp in contiguous internal structures) which would surely have occurred if the groundwater hypothesis was correct.

178 Mr Trinder relied on, or adopted, other assumptions and made points which I have not accepted or are of limited relevance.

179 His assumption (see [161]) that the water table in the vicinity of the school is 'only' 1 - 2 m bgl was unqualified as to the season of the year and was only applicable in wet winter months based on Mr Lunsdorf's uncontested opinion (which I have accepted). In June 2011 the water table was 2.8 m bgl, and was probably no higher in the months prior, given Mr Lundorf's evidence that groundwater levels tend to be at their lowest in autumn. Yet this was the likely timeframe for the disbondment to be starting.

180 Mr Trinder assumed that cracks which he observed in the slab in one photograph would have been replicated elsewhere (see [162]). There was no basis for an assumption of that kind other than the bare possibility that it might have occurred and no witnesses (especially Mr Vincent who would know) gave direct evidence confirming that it had occurred. In any event, Mr Trinder failed to explain why visible (surface) cracking in a slab would have created viable pathways for moisture to migrate through an entire slab, or why the moisture would not eventually recede (evaporate) from the concrete by the same route that it entered when dry conditions returned. Dr Zurhaar dismissed the possibility entirely.

181 His argument that the first half of 2011 was wetter than the corresponding period in 2009 and 2010 said nothing relevant about the groundwater levels in 2011 unless the same were abnormally high at the same time in 2009 and 2010 which (on the evidence) they were not.

182 At times, Mr Trinder gave the impression of being oppositional for no justifiable reason:


    (i) On several occasions he referred to Dr Zurhaar by his surname without using his title. That was discourteous and suggested an unwarranted lack of respect for Dr Zurhaar's expertise and independence. It suggested that Mr Trinder saw himself and Dr Zurhaar in adversarial roles.

    (ii) Mr Trinder indulged in semantics when he was being cross-examined (ts 928 - 932) about Dr Zurhaar's evidence about the curing time of concrete (see [135](ix)). Mr Trinder construed Mr Buchan's questions as if he (and thus Dr Zurhaar) had been referring to a different process which is also known as 'curing', namely the application of a chemical compound to concrete whilst it is being poured for the purpose of preventing or reducing evaporation. In other words, the cross-examiner and Mr Trinder seemed to be at cross-purposes. Once the confusion was cleared up Mr Trinder agreed with Dr Zurhaar's evidence. The problem was that it was clear at all times from the questioning that Mr Trinder was being asked about Dr Zurhaar's evidence in relation to 'curing' in the 'hardening' sense. I felt that Mr Trinder was being uncooperative and needlessly obstructive.

    (iii) He contended that the 25 MPa concrete that was used in the slabs was excessively porous and 32 MPa would have been preferable (as was specified for the buildings that were built by others). Assuming for present purposes that Mr Trinder was correct, it is a false issue. It matters not whether the slabs are less dense (more porous) than those laid elsewhere by others. This case is concerned with the interaction of Site conditions, the waterproofing (or lack of it) and Aquron in respect of a slab of a certain porosity (25 MPa). I apprehend that Mr Trinder was point-scoring for its own sake.


183 Most importantly, I do not believe that Mr Trinder's evidence in its fundamentals actually supported the groundwater hypothesis.

184 In the context of the slabs having been treated with Aquron, he contended that the retained moisture would have 'gradually' or 'very slowly' dried out if groundwater had not been introduced ([166]). But that predicates evaporation through the surface of the slab immediately below the vinyl. Given that the vinyl was impervious, it would follow that the moisture level on the surface would 'gradually' or 'very slowly' increase and the adhesive would re-emulsify. To my mind that process and timeframe bears an irresistible similarity to Pindan's hypothesis.

185 I turn now to assess the evidence itself and make findings. I shall commence with facts and circumstances which tend to support the groundwater hypothesis.

186 First, it is possible that the waterproof membrane under the slabs was occasionally penetrated and not repaired before concrete was poured, particularly along external edges (see [103]).

187 Second, for all practical purposes, the external strip footings and isolated footings do not have a waterproof membrane at deep levels. Accordingly, they were susceptible to the ingress of any groundwater or moisture which came into contact with them.

188 Third, groundwater would have mounded around soakwells after rainwater events, some of which were close to external footings. Also, capillary rise could create a moist zone above groundwater levels. Therefore, the possibility could not be ruled out that deep footings (at least) came into contact with moist sub-soil.

189 Fourth, given that the moisture densities of the slabs did not fall significantly, even as moisture migrated out of the slabs after the vinyl was laid, an inference is open that the slabs were being re-charged from somewhere.

190 Fifth, there is evidence that the re-emulsification of the glue occurred quite quickly.

191 Sixth, not all of the vinyl flooring blistered, although it may be inferred that the moisture density was similar throughout all the slabs. This would suggest that Aquron worked in the areas where blistering did not occur and was not causally relevant in the areas where it did occur.

192 I turn now to consider the facts and circumstances which support Pindan's hypothesis.

193 First, based on Mr Lundorf's opinion that the groundwater level would have been 2.8 m bgl in June 2011, and making allowance for matters such as capillary rise (moisture zones) and mounding around soakwells, I am satisfied that the groundwater (including the moisture zone above) never came close to the underside of the slabs or the footings in the first half of 2011. Mounding would not affect any part of a slab at a distance from the soakwells.

194 I also accept Dr Zurhaar's evidence that it would not be possible for a slab to become wet from contact with the groundwater to such an extent as to reach the underside of the vinyl flooring without wholly saturating the concrete. In that case the moisture density would have been in the order of 8.2% - 8.4%. Such was never recorded.

195 I also accept Dr Zurhaar's evidence that the saturation of the slab and/or widespread escape of moisture would have caused widespread collateral damage which did not occur. The only collateral damage that did occur is all consistent with rainwater leaks which were contiguous in time and place.

196 I also accept Dr Zurhaar's evidence that Aquron was not suitable from the chemical point of view of the chemistry, because the curing process was too advanced when it was applied to enable sufficient densification.

197 In this respect I have not overlooked Mr Trinder's opinion that high moisture levels would have inhibited carbonation which (he contended) would, in turn, have rendered the slabs more suitable for the late application of a colloidal silicate such as Aquron. However, I accept Dr Zurhaar's evidence that the molecular mobility and re-activity of the concrete which is essential to the efficacy of colloidal silicates is more complicated than Mr Trinder allowed and would have slowed significantly by the time the Aquron was applied due to curing having taken place, remembering that 'curing' and 'carbonation' are not the same thing. In this respect Dr Zurhaar said in evidence (ts 472) and I accept:


    Mr Trinder is saying that he believes as long its only 12 months old it's still insufficiently cured to be able to interact with Aquron. It's my contention that 12 months is a very long time for concrete and it's well beyond its completely fully cured state. And whilst natural carbonation may be slow to happen it is not the governing process for the efficacy of Aquron. There are … factors such as the moisture content of the concrete and its porosity and whether it's sealed by having been honed or helicopter finished as they do in the industry. There are a large number of physical properties and characteristics which will determine the propensity of a concrete slab to take up a water based solution like Aquron or not; not just simply its age.

198 I construe this evidence to mean the increased availability of calcium hydroxide brought about by the reduced rate of carbonation is not decisive and that the stage of the cure (the hardening of the concrete) is the more relevant factor.

199 I also accept Dr Zurhaar's evidence that to be effective the Aquron treatment had to effect complete densification of the slabs which, I find, did not occur.

200 In his closing submissions Mr MacLean advanced an argument which sought to prove that, based on a number of assumptions, it is possible that the moisture zone was able to make contact with the deepest footings from where it would have been possible for moisture (rising damp) to reach and permeate the slabs.

201 The critical assumptions and argument went as follows. The relevant groundwater level could have risen to about 1.0 – 1.3 m bgl in wet times. A further 0.5 m can be allowed for the moisture zone above the groundwater level itself. This would take the moisture to within 0.5 - 0.8 m bgl or even less allowing for local mounding (up to 0.3 m). Given that the footings are all at least 0.5 m bgl (0.6 m if the slabs are 400 mm thick above the external footings), and many are deeper, they could have encountered moist soil conditions.

202 This argument falls away when put to the test.

203 First, in Mr Lundorf's opinion (which I have accepted) the groundwater level only rose as high as 1.3 m bgl in the wet seasons of 2008 and 2009. Allowing for a 0.5 m moisture zone above the water table and leaving aside mounding for now, only footings extending to around 0.8 m bgl would have encountered moisture. There were no such footings in the affected buildings and levels in the first half of 2011 would have been much lower than 1.3 m bgl.

204 Further, based on the basic hydrological principles (see [135] (i) - (iv)) the moisture in the soil that was contiguous with the footings, and thus the moisture in the footings, would have receded as the water table receded with the end of each wet season (ie, the rising damp would have receded). As such any absorbed moisture would not have remained in the footings indefinitely.

205 To elaborate, the moisture density in the footings would have needed to remain high enough for long enough to allow moisture to reach the slab edge-thickenings and ultimately the slabs themselves, without receding, until the slabs were sufficiently moist to cause the widespread blistering that occurred. There is simply no evidence to support a finding that the groundwater conditions ever met those requirements.

206 I should add that no reliable empirical evidence was given as to the rate at which the rising damp would have occurred in the footings (compare the empirical evidence about a 100 mm thick slab: [135](ii)). This introduces another unsatisfactory note of uncertainty, if not speculation.

207 Mounding around soakwells would have to be taken into account, but the absorbed moisture in the concrete would still recede as the mounding receded. Further, Mr Lundorf testified that the effects of mounding would have been very localised. This is supported by the lack of any correlation between the widespread distribution of the vinyl failures and the distribution of the soakwells.

208 Indeed, there is a lack of correlation between the slab-footing depths and the vinyl failure in the buildings with deep footings. Taking the specialist learning building as an example, the slab-footing depths were mostly 750 mm with two of 650 mm in the northern area. Whilst there is evidence of vinyl failure in the northern area, there was none in the southern section.

209 Further, and more importantly, based on Dr Zurhaar's evidence, I find that any groundwater re-charge (rising damp) through the footings or unrepaired penetrations in the waterproof membrane (less than 1% of the whole: [103]) would have been localised and insufficient to make any material difference to the moisture density of the slabs as a whole. In particular it would not have spread far enough to account for the extent of the blistering.

210 In my assessment the grounds and reasoning supporting Pindan's hypothesis heavily outweigh and negate those supporting the groundwater hypothesis. The Pindan hypothesis is more consistent with the scientific principles and is supported in almost every respect by objective facts or, in relation to the hydrological issues, the cogent expert opinion of Mr Lundorf.

211 The factual conditions and assumptions upon which the groundwater hypothesis relies simply did not occur to the extent necessary to cause the amount of damage that happened.

212 As to the leak hypothesis, I have no hesitation in accepting Dr Zurhaar's evidence that, firstly, insufficient water would have been available to affect the widespread areas that failed and, secondly, the hypothesis is incapable of explaining the blistering in the absence of collateral damage in the same areas. To elaborate, I accept Mr Zurhaar's evidence that the 'front' created by the ingress of water would have consumed the water which would have reverted to an emulsified, glue-like substance. The evidence (such as it was) about the leak hypothesis did not explain (let alone support) how that front would have then progressed across the slabs and caused the damage that did occur.

213 To sum up, the evidence that I accept supports findings that exclude the groundwater and leak hypotheses, which leaves Pindan's hypothesis. For reasons which I have given ([53]) that does not mean that Pindan's hypothesis is proven on the balance of probabilities. But, I make and rely upon the following findings.

214 I accept Dr Zurhaar's evidence that the interaction and efficacy of Aquron and concrete is a multi-factorial matter which is not apt to enable a single, categoric explanation, but Aquron was not a suitable product in this case because the concrete had fully cured.

215 The area of vinyl flooring that suffered from blistering was the majority by a very significant margin. The fact that some areas did not suffer from the same problem is an anomaly, but there is no evidentiary requirement that such must be categorically and decisively explained.

216 I have not overlooked the contention (see [189]) that the slabs must have been re-charged from somewhere if moisture densities did not fall as moisture migrated out of the surface. However, that contention assumes that the migration of the water predicated by Pindan's hypothesis would have made a demonstrable difference to the density of the retained moisture. There was no empirical evidence as to this one way or the other, but both experts believed that the re-emulsification would have occurred quite quickly once moisture began to migrate from the slabs, ie, it would not have taken much moisture (see [165]).

217 Nor have I overlooked the large amount of anecdotal evidence that Aquron has been successfully used on numerous occasions to treat moisture problems in 'old' concrete (see [221] - [223]). The present case is undoubtedly unusual in the experience of Messrs Vincent and Coveney. (I place no weight on the Aquron catalogue at this point). There were clearly idiosyncrasies about the slabs in this matter which have not been understood (see [263] and [269] – [281]). Whatever they were, the Aquron treatment did not work.

218 In conclusion, I am satisfied by the admissible evidence that the Pindan hypothesis is open and is the probable explanation for the re-emulsification of the adhesive (the vinyl blistering). In particular, I find as a fact that the blistering occurred because of the migration of retained moisture from the slabs, which is the very process that the Aquron treatment was supposed to prevent.

219 I turn now to consider in more detail how Aquron came to be used and the legal ramifications of its failure.




Mr Vincent's (Seattle's) background and expertise

220 Based on the uncontested evidence of Mr Vincent and Mr Coveney I make the following findings.

221 Mr Coveney (through his companies) has been involved in the importation, distribution and application of Aquron in Australia since 1997. He estimated that his companies have supplied the product for several hundred jobs including to flooring installers who 'need moisture protection' (ts 808, 812). His companies have also applied Aquron in a number of large and small commercial projects with satisfactory results, including instances when it was applied to old concrete.

222 In summary, I find that Mr Coveney has always had a high level of confidence in the suitability of Aquron for use in containing moisture within new and old concrete.

223 Mr Vincent has been involved in the vinyl flooring industry for 45 years and is thus very experienced.

224 He accepted (ts 715) that he could be described as having 'specialist skill and knowledge in the area of flooring' and that he and his staff 'exercised that specialist skill and knowledge when … preparing the surfaces of the concrete slabs' at the Atwell College (ts 715).

225 Mr Vincent was introduced to Aquron by Mr Coveney. He attended a two day seminar that was presented by Mr Coveney in Melbourne in March 2004. Numerous examples were given of projects where Aquron had been successfully applied.

226 I find that Mr Coveney's confidence in Aquron's suitability for use on both new and old concrete was conveyed to Mr Vincent who, thus, came to believe that Aquron was suitable for use in containing excess moisture within new and old concrete.

227 At that time Mr Vincent was already familiar with a similar product, Protect-Crete, which Seattle had applied to concrete at the Willetton High School in about 2002. Seattle also used it at Wooroloo Prison in mid-2007 and in a Rio Tinto building in 2009.

228 Seattle successfully applied Aquron at the Willagee Primary School in 2004 using an accredited sub-contractor. The moisture densities had been found to be well in excess of 5.5% ('around 6.9% or something like that': ts 660).

229 Mr Vincent testified that in all of these cases the concrete was old and there were no adverse outcomes after the flooring was laid.

230 Mr Vincent became an accredited Aquron applicator on 30 April 2006 after completing a five-hour practical and theoretical course at Seattle's premises (see exhibit 11). Joseph and Rick Vincent attended.

231 The theoretical component included a large catalogue of technical marketing and other information including client testimonials (the Aquron catalogue: exhibit 10).

232 Amongst other things, the Aquron catalogue listed a very large number of Australian projects where Aquron had been used. The catalogue clearly represented that Aquron was a tried and tested product.

233 Based on what he had learnt at the 2004 seminar and during training, and read in the Aquron literature, Mr Vincent was completely confident that Aquron was suitable for application to concrete of all ages (ts 717, 723).




The issuance of SI 262

234 One of Pindan's project managers, Mr Malcolm Miller, sought Mr Vincent's advice as soon as the adverse moisture test results became available in October 2007. They had a conversation at the Site office on or before 4 October.

235 Mr Miller told Mr Vincent that Pindan did not want to interrupt the building programme and therefore could not afford to leave the slabs to dry naturally; nor could they use artificial means (fans) to dry them because that would interrupt other trades.

236 Mr Vincent recommended the application of Aquron because it would not affect the construction timetable. His evidence was that he said (ts 640): 'I believed that the product Aquron would do what we needed it to do'.

237 At the time Mr Vincent was aware that there were other brands like Aquron as well as surface membranes such as Ardex WPM 300 (ts 710 - 711). However he only recommended Aquron.

238 Mr Miller requested Mr Vincent to provide him with any Aquron literature that he had.

239 About three or four days later Mr Vincent returned to the Site and gave Mr Miller a copy of the Aquron catalogue.

240 On 4 October 2007 Mr Miller sent an email to Mr Vincent requesting him to provide a quotation 'for moisture treatment to the affected areas' (TB 3).

241 On 10 October 2007 Mr Vincent faxed a quotation to Mr Kinner (dated 9 October) for the supply and application of Aquron at a rate of $22 per sq m plus GST. The quotation stated, amongst other things:


    Note: A 10-year warranty applies for this product and all other warranties will still apply with regard to the floor coverings and the installation.

    Please see attached.


242 The attachment consisted of three pages from the Aquron catalogue containing numerous statements about the efficacy of Aquron. Amongst other things, they stated that Aquron:

    • Permanently seals concrete from within, making concrete impervious to hydrostatic pressure … . The only known substance to penetrate Aquron is more Aquron!!!

      • Complete seal by internal moisture barrier

      • Stops internal moisture migration and delamination of adhered coatings (providing steps outlined in Aquron 'Key Issues' are followed)

243 The 'Key Issues' covered 11 matters relating to the preparation and application of Aquron and the subsequent application of adhesives and floor coverings. None of them are relevant for present purposes.

244 The third page of the attachment was entitled 'Site considerations for Aquron 2000 where floor coverings or coatings are to be applied' and stated, amongst other things:


    • Aquron 2000 can be applied to any age concrete.

    • For existing concrete all floor preparations, latencies, paints, adhesives, waxes and certain curing compounds must be removed prior to the application of Aquron 2000. (Aquron 2000 is a curing compound).

    • Should the concrete surface be highly polished, the surface should be abraded to allow penetration of Aquron 2000.


245 It is common ground that Seattle's and Mr Vincent's conduct referred to at [236] and [241] – [244] represented to Pindan (the Aquron representation) that the application of Aquron 2000 to the concrete slabs would enable Seattle to adhesive fix vinyl flooring to the slabs as required by Item 53 of the bill of quantities (using a water-based adhesive) and ensure that the works would be carried out in accordance with the terms and conditions of the Seattle Contract.

246 As pleaded, the making of the Aquron representation is confined to what was said during oral discussions and in writing by way of the quotation dated 9 October 2007 and the attached pages from the Aquron catalogue (TB 4 - 7).

247 Pursuant to the Head Contract, Pindan was obliged to refer the decision to use Aquron to JCY for approval. As such, the actual decision to use it was made by JCY.

248 Mr Kinner testified (ts 123 – 127) as to the sequence of events.

249 He (thus Pindan) had no previous knowledge or experience with the laying of vinyl flooring on moist concrete slabs. Pindan's experience was primarily with apartment buildings which generally have tiled or carpeted floors, so the problem does not arise.

250 Thus, when he was apprised of the moisture problem in October 2007 he was unaware of any possible solutions. So, he 'referred that' to Mr Vincent.

251 Whilst he did not explicitly deal with it in his evidence, it is to be inferred that he delegated this responsibility to Mr Miller and was in due course apprised of his communications with Mr Vincent.

252 He read Seattle's quotation dated 9 October 2007 but primarily focused on the cost ($22 per sq m plus GST). He noted that a 10-year warranty was offered.

253 He passed the quotation onto JCY for a superintendent instruction (ie, a variation) to be issued to use the product.

254 He did not speak to anyone at JCY about using any other product because (ts 126):


    … this was what was recommended by the vinyl contractor to resolve the moisture treatment problem.

    … JCY … issued instructions for its use. So nobody from Pindan chose to use the product.


255 He was copied into an email from Mr Sullivan (JCY) to Mr Melis (KBR) dated 12 October 2007 which stated:

    Any comments you may offer appreciated. Pindan have put forward AQURON 2000 to seal the concrete and allow vinyl/carpet to be laid with the moisture content above the 5.5% specified. Have you experience with this product??

256 There is no evidence that Mr Melis considered or responded to the question in the final sentence. He did, however request Mr Kinner to instruct Seattle to obtain further moisture readings as at 15 October 2007. Mr Kinner forwarded the request to Mr Vincent who carried out the tests and forwarded the results to Mr Kinner.

257 On 25 October 2007 Mr Kinner obtained a quotation from Concept Products for the supply and application of Aquron, but only to check that Seattle's price was reasonable. He forwarded the quotation to JCY.

258 JCY issued SI 262 on 28 November 2007. It stated (emphasis in the original):


    262.01 Concrete Slabs Moisture Content: carry out moisture reading test on concrete slabs in location specified to have sheet vinyl laid at the latest program date possible so not to delay the program date for laying the sheet vinyl on a building by buildingbasis to determine if the moisture content has reached the specified reading of 5.5%.

    262.02 Submit Moisture Reading to the Superintendent Representative

    262.03 In locations where the moisture reading do not achieve the specified moisture content of 5.5% apply Aquron 2000 in accordance with the manufactures recommendation.

    262.04 Quotation from Flooring Solutions dated 9 Oct 2007 for the supply and installation of Aquron 2000 at $22 per square metre is accepted.


259 On 28 February 2008 Mr Sullivan sent a facsimile to Mr Kinner seeking the results of moisture tests carried out by Seattle 'prior to the sealer going down' pursuant to SI 262.

260 In the absence of evidence from Mr Sullivan or Mr Melis, one can only infer from the documents how the decision-making unfolded. I make the following observations. First, Pindan completely deferred to JCY who in turn sought comment from KBR but, apparently, received nothing adverse in response. Second, Mr Sullivan wanted the final decision as to the use of Aquron to be left to the last possible moment for each building in the hope that the retained moisture density might drop below 5.5% and obviate the need for Aquron to be used. Third, SI 262 stressed that the product was to be applied 'in accordance with the manufacturer's recommendation', that is to say, Mr Sullivan had taken the Aquron literature into account.


Other Parts:Pages 51 to 77

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Kirkland v The Queen [2021] SASCA 14
Luxton v Vines [1952] HCA 19