Disputing A Final Certificate: Does The Contractor Still Need To Pay?

The Situation: Most construction contracts, including AS4000 and AS2124, stipulate that a final certificate is issued following completion of the work, stating the final amount payable between the parties. 

The Development: Two recent decisions by the Queensland Supreme Court held that contractors were not obliged to pay the amount certified in final certificates which were the subject of timely notices of dispute. 

Looking Ahead: The Court's decision has led to some uncertainty, as a Victorian ruling concerning a modified AS2124 reached the opposite conclusion. Future cases will reveal whether the Queensland decision is followed by other courts.

The Background

Construction contracts usually provide for a final certificate to be issued following completion of the works, containing an assessment of the amounts finally payable between the parties to the contract. The functions of the final certificate always depend on the terms of the contract, but in most