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ARTICLE · 25 APRIL 2012

Case summary: Silver Star Construction Pty Limited t/as Genesis Construction Australia v Denham Constructions Pty Limited

Norton Rose Fulbright Australia
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The underlying intention of the SOP Act is for a claimant to receive a prompt interim decision on a disputed payment.

AustraliaCorporate/Commercial Law
Andrew Hopkins
Andrew Hopkins
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In a recent unreported judgement of the New South Wales District Court, it was confirmed that a Principal that owes money to a Contractor arising under the Building and Construction Industry Security of Payment Act 1999 (NSW) (the SOP Act) can not attempt to defeat the purposes of the Act and delay payment of the monies owed by requesting a stay of execution because of the commencement of a cross claim.

In Silver Star Construction Pty Limited t/as Genesis Construction Australia v Denham Constructions Pty Limited (unreported, District Court of NSW, Olsson SC DCJ, 25 November 2011), Silver Star (the Contractor) made four payment claims for work carried out at two projects in NSW. Denham (the Principal) either did not serve, or did not serve in time the payment schedules required by the SOP Act. A statutory debt arose and Denham became liable to Silver Star for the whole amount claimed, being a total of $295,811.69 which was awarded at previous judgement.

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