SSC Plenty Road Pty Ltd v Construction Engineering (Aust) Pty Ltd

SSC Plenty Road Pty Ltd brought proceedings against Construction Engineering (Aust) Pty Ltd in the Supreme Court of Victoria, seeking a declaration that an adjudication determination made by an adjudicator was void. The dispute arose from an adjudication under the Building and Construction Industry Security of Payment Act 2002, where the adjudicator determined that SSC was entitled to payment of an amount claimed in a payment claim. The primary issues for the court were whether the adjudicator's decision was made in error of law, and if a contractual requirement for mediation prior to adjudication was inconsistent with the statutory scheme of the Act.

The court considered whether the adjudicator was bound to adopt the pricing by the superintendent as the court found that the adjudicator did not consider the pricing provided by the superintendent. The court found that the adjudicator was not bound to adopt the superintendent’s pricing, and the adjudicator was entitled to make an independent assessment of the evidence and determine the amount to be paid. The court also considered the purpose of the Act, which is to ensure that a claimant receives a prompt and fair determination of the disputed amount. The court found that the adjudicator had valued the work in accordance with the Act, and the adjudicator’s determination was not an error of law.

The court further considered whether the contractual requirement for mediation was inconsistent with the Act. The court found that the Act does not preclude the parties from agreeing to a method of resolving disputes, and the requirement for mediation did not amount to an inconsistency with the Act. The court also found that the terms of the construction contract were not void under section 48 of the Act for inconsistency with the Act.

The court held that the adjudicator's determination was not an error of law and was not void. The court dismissed the proceedings brought by SSC Plenty Road Pty Ltd.