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ARTICLE · 03 AUGUST 2009

Builder Pays Indemnity Costs For Building and Construction Industry Payments Act (BCIPA) Statutory Demand

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The decision in Tesoro MB Pty Ltd v Total Building Group Pty Ltd [2009] FCA 802 (24 July 2009) provides important clarification on the law relating to statutory demands in the context of adjudications under the Building and Construction Industry Payments Act 2004 (Qld) (BCIPA).

AustraliaReal Estate and Construction
Rocco Russo
Rocco Russo
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The Federal Court has ordered a builder to pay costs on the indemnity basis for refusing to withdraw a statutory demand based on a BCIPA adjudication.

The decision in Tesoro MB Pty Ltd v Total Building Group Pty Ltd [2009] FCA 802 (24 July 2009) provides important clarification on the law relating to statutory demands in the context of adjudications under the Building and Construction Industry Payments Act 2004 (Qld) (BCIPA).

Background

The BCIPA gives builders a fast-track mechanism for the adjudication of disputes. An adjudication decision can be registered and enforced as a judgment, but the parties still retain their right to bring proceedings at a later stage to challenge the adjudication outcome.

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