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ARTICLE · 02 MARCH 2006

Challenging Security of Payment Adjudications – is Brodyn Good Law?

The decision in Brodyn has reinforced the transformation in the legal environment underpinning construction contracts in NSW by significantly restricting the ability of principals to challenge adjudications, but is it good law?

AustraliaReal Estate and Construction

Key Point

  • The decision in Brodyn has reinforced the transformation in the legal environment underpinning construction contracts in NSW by significantly restricting the ability of principals to challenge adjudications, but is it good law?

The Building and Construction Industry Security of Payment Act 1999 (NSW) has transformed the legal environment underpinning construction contracts in NSW. The power balance (derived from holding the cash) has shifted significantly from principals to contractors, as contractors are now able to obtain progress payments on an interim basis and principals (rather than the contractors) are faced with the problem of recovering amounts which they consider are owing to them.

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