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ARTICLE · 30 APRIL 2013

Payment claims under contract and under the Security of Payment Act: dual system or parallel universe?

The Court found the adjudication determination void due to the adjudicator's misconstruction of Security of Payment Act.

AustraliaReal Estate and Construction
Two roads diverged in a yellow wood,
And sorry I could not travel both
And be one traveler, long I stood
And looked down one as far as I could
To where it bent in the undergrowth;


Then took the other, as just as fair,
And having perhaps the better claim,
Because it was grassy and wanted wear;
Though as for that the passing there
Had worn them really about the same...
- from Robert Frost, The Road Not Taken


In brief - Supreme Court finds adjudication determination is void due to adjudicator's misconstruction of Building and Construction Industry Security of Payment Act

The purpose of the Act is to facilitate payment under a construction contract. Although it can overcome procedural hurdles imposed by a contract to the making of a payment, it cannot create an entitlement to payment under a contract where one does not exist or has been validly extinguished.

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