Tenix Alliance Pty Ltd v Magaldi Power Pty Ltd

Tenix Alliance Pty Ltd (Applicant) brought an action against Magaldi Power Pty Ltd (Respondent) in relation to the payment of progress claims under a construction contract. The matter was heard in the Supreme Court of New South Wales. The Applicant alleged that the Respondent had failed to make payments due under the contract and sought judgment for the amount claimed, plus interest and costs.

The legal issues before the court involved the validity of payment claims made after a reference date, the recoverability of prolongation costs, and the compliance of the payment schedule with statutory requirements. The Applicant argued that the payment claim was valid and that the Respondent was liable for prolongation costs incurred after the payment claim was made. The Respondent contended that the payment claim was invalid as it was made after the reference date and that prolongation costs incurred after the claim was made were not recoverable.

The court held that the payment claim was not invalid simply because it was made after the reference date. The court found that the payment schedule did not comply with statutory requirements as it did not include a statement of reasons for withholding part of the amount claimed. However, this non-compliance did not affect the validity of the payment claim. The court also found that prolongation costs incurred after the payment claim was made were not costs of construction work and therefore not recoverable.

The court ordered judgment in favour of the Applicant for the amount of $890,930.26 plus interest and costs. The court also ordered that the Respondent pay the Applicant's costs of and incidental to the Application.