Queensland Bulk Water Supply Authority v McDonald Keen Group Pty Ltd (in liq)

The Queensland Bulk Water Supply Authority, as the appellant, sought to challenge the decision of a trial judge who had upheld an adjudicator's decision allowing McDonald Keen Group Pty Ltd, in liquidation, to recover a progress payment. The dispute originated from a construction contract and the statutory framework governing progress payments. The case raised significant questions about the enforceability of an adjudicator's decision under the Building and Construction Industry Payments Act 2000 (Qld), and whether the trial judge correctly interpreted the statutory requirements and the nature of the adjudicator's discretion.

The central legal issues before the court were whether the application for a declaration that the adjudicator's decision was void and an order to set aside the judgment constituted an impermissible collateral attack on the judgment, and whether the adjudicator had acted in good faith and provided natural justice to the respondent. Additionally, the court had to determine the scope of the adjudicator's discretion under the relevant legislation, specifically whether the test for good faith was to be narrowly or broadly construed.

The court found that the trial judge had correctly interpreted the statutory provisions and upheld the adjudicator's decision. The adjudicator had made a bona fide attempt to exercise their powers as required by the legislation, and the decision was in line with the statutory framework. The court held that the application to set aside the judgment was not an impermissible collateral attack, as it did not challenge the merits of the adjudicator's decision but rather questioned the process. The trial judge's finding that the adjudicator acted in good faith and accorded natural justice to the respondent was affirmed, as the adjudicator's decision was based on the statutory criteria and the evidence presented.

The appeal was dismissed with costs. The decision reinforces the principle that adjudicators under the Building and Construction Industry Payments Act 2000 (Qld) must be given a broad discretion in making their determinations, provided they act in good faith and follow the statutory requirements. This case underscores the importance of adhering to the statutory framework when seeking to challenge adjudicators' decisions.