Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 24 JULY 2016

Krongold Constructions (Aust) V SR & RS Wales [2016] VSC 94

Corrs Chambers Westgarth
Corrs Chambers Westgarth
Contributor
Corrs Chambers Westgarth

Corrs Chambers Westgarth

Corrs Chambers Westgarth is Australia’s leading independent law firm. We provide exceptional legal...

View firm profile
Explore more from Corrs Chambers Westgarth

Simply accepting a contractor's assessment on the basis that it is not unreasonable or excessive is insufficient.

AustraliaReal Estate and Construction
Author LinkedIn connections

KEYWORDS: SECURITY OF PAYMENT ACT; IDENTIFYING WORKS; VALUATION PROCESS

KEY TAKEAWAY

This case confirms the contractor's obligation to ensure that work the subject of a payment claim is sufficiently identifiable to the principal. Further, it clarifies the adjudicator's burden to apply a reasonable valuation process when assessing a payment claim, and to demonstrate how this process aligns with the requirements of the Building and Construction Industry Security of Payment Act 2002 (Vic) (Act).

Simply accepting a contractor's assessment on the basis that it is not unreasonable or excessive is insufficient.

Facts

Krongold Constructions (Aust) Pty Ltd (Krongold) was engaged to construct a restaurant at a winery in Healesville. Krongold met with SR & RS Wales (Wales) to discuss civil works required for the project. The parties then executed a contract for the works (Contract) with the minutes from the pre-contractual meeting annexed to the Contract (Minutes).

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

Personal Guarantees In Commercial Leases: Risks For Directors

Directors who sign retail leases on behalf of company tenants often provide personal guarantees without fully understanding the scope of their liability. This liability can extend far beyond unpaid rent to include outgoings, interest, make-good costs, and enforcement expenses, persisting even after resignation or business sale. Understanding the distinction between guarantees and indemnities, and knowing when statutory protections may apply, is essential for directors seeking to limit their personal exposur
AustraliaReal Estate and Construction
Stonegate Legal
Stonegate Legal
Article

Project Distress In Queensland: Lessons From The Bathla Collapse

The collapse of the Bathla Group has sent ripples through Australia's construction sector, raising critical questions about financial distress management in major projects. With Queensland delivering an unprecedented infrastructure pipeline amid margin pressures and market uncertainty, are project participants adequately prepared to identify and respond to insolvency warning signs before external administrators arrive?
AustraliaReal Estate and Construction
Holding Redlich
Holding Redlich
Article

Construction Law in Queensland: Complete Guide

Construction law in Queensland establishes a comprehensive framework governing building contracts, payment rights, dispute resolution, and remedies. The legislation creates rapid adjudication mechanisms and strict compliance requirements that can determine the outcome of disputes within days. Understanding how statutory rules interact with contractual terms is essential for protecting rights and avoiding costly procedural mistakes.
AustraliaReal Estate and Construction
Stonegate Legal
Stonegate Legal
Article

Security Of Payment Still Bites: ACL Claims Won’t Stop Enforcement Of Adjudication Determinations

The Victorian Court of Appeal has reinforced that security of payment legislation creates a separate interim right to payment, confirming parties cannot use Australian Consumer Law claims to prevent enforcement of adjudication determinations. This decision examines whether allegations of misleading conduct regarding project costs and timelines can circumvent the 'pay now, argue later' regime established under Victoria's Building and Construction Industry Security of Payment Act.
AustraliaReal Estate and Construction
Holding Redlich
Holding Redlich
Article

Key NSW Security Of Payment Decisions: Monthly Roundup For August 2026

This monthly roundup examines five significant NSW Supreme Court and Court of Appeal decisions from August 2026 that clarify critical aspects of the Building and Construction Industry Security of Payment Act 1999, including payment claim validity, procedural fairness in adjudications, and enforcement of judgment debts. The cases address contentious issues such as the 12-month limitation period for payment claims, the relevance of unpaid judgment debts in security for costs applications, and the scope of sec
AustraliaReal Estate and Construction
Holding Redlich
Holding Redlich
Article

Australia’s Privacy Act Reforms: Fundamental Changes Proposed In New Exposure Draft

Australia's Privacy Act reform has reached a critical milestone with the release of exposure draft legislation proposing fundamental changes to how organisations handle personal information. The reforms introduce a new 'fair and reasonable' test for data collection and use, a right of erasure for large digital platforms, strengthened consent standards, a statutory controller/processor framework, restrictions on trading personal data, and enhanced data breach obligations. These changes come at a time when em
AustraliaPrivacy
Corrs Chambers Westgarth
Corrs Chambers Westgarth
Article

Cross-border software payments and royalties: implications of final taxation ruling and practical compliance guideline Read More

The Australian Taxation Office has issued its final ruling on cross-border software payments, dramatically expanding what constitutes a royalty subject to withholding tax. With retroactive application to July 2021 and a broad interpretation of copyright law, multinational companies face significant compliance risks and potential exposure across software distribution, cloud services, and digital intermediation arrangements.
AustraliaTax
Corrs Chambers Westgarth
Corrs Chambers Westgarth
Article

EPBC Act Reforms: Consultation On Proposed Regulations To Support Final Tranche Of Reforms

Australia's Department of Climate Change, Energy, the Environment and Water has released consultation papers outlining the regulatory framework for the final phase of environmental protection reforms under the EPBC Act. With submissions closing on 13 October 2026 and implementation scheduled for 1 December 2026, these reforms will fundamentally reshape how projects are assessed and approved, introducing streamlined pathways...
AustraliaEnvironment
Corrs Chambers Westgarth
Corrs Chambers Westgarth
Article

APRA and ASIC's coordinated approach to frontier AI: implications for financial services entities Read More

APRA and ASIC have issued coordinated guidance on frontier AI risks, requiring financial services boards to demonstrate direct oversight of AI governance, cyber resilience and third-party dependencies. The regulators' expectations build on existing prudential standards and directors' duties, with enforcement signals indicating that proportionate action must be taken before incidents occur.
AustraliaStrategy
Corrs Chambers Westgarth
Corrs Chambers Westgarth
Article

Five Decisions That Will Define Australia’s AI Future

Prime Minister Albanese's speech on 15 July 2026 marked a decisive shift in Australia's approach to artificial intelligence, from voluntary guidance to mandatory national regulation. The announcement establishes Australian Standards for AI, copyright licensing requirements, a national planning framework for data centres, energy obligations, and workplace protections—all underpinned by the concept of sovereign AI.
AustraliaMedia, Telecoms, IT, Entertainment
Corrs Chambers Westgarth
Corrs Chambers Westgarth