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ARTICLE · 17 MAY 2017

BCIPA: High Court confirms that a valid construction contract payment claim requires a reference date

Cooper Grace Ward
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The decision provides certainty as to when payment claims are valid and effective in triggering the adjudication process.

AustraliaReal Estate and Construction
Rocco Russo
Rocco Russo
Emma Allatt (Formerly With Cooper Grace Ward)
Emma Allatt (Formerly With Cooper Grace Ward)
Miranda Klibbe
Miranda Klibbe
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At the end of last year, the High Court delivered its first judgment on security of payment legislation: Southern Han Breakfast Point Pty Ltd (In Liquidation) v Lewence Construction Pty Ltd [2016] HCA 52. The decision confirms that the existence of a reference date under a construction contract is a precondition to the making of a valid payment claim (and, in turn, a precondition to the making of a valid adjudication application and determination)

The facts

Southern Han Breakfast Point Pty Ltd and Lewence Construction Pty Ltd were parties to a contract for the construction by Lewence of an apartment block in New South Wales.

The Contract provided for Lewence to claim payment progressively from Southern Han by making a progress claim on the eighth day of each month for work completed up to the seventh day of that month.

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