It is tempting to respond in a Payment Schedule with the words
"pending", "insufficient
information" or "we will not pay your
claim until all works are finished". However, these types
of unsubstantiated reasons will not work.
In the NSW Supreme Court of Appeal case, Joye Group Pty
Ltd v Cemco Projects Pty Ltd [2021] NSWCA 211, their
Honours Justices Basten, Macfarlan and Emmett provide further
guidance on how to make a valid payment schedule in accordance with
the requirements of s 14(3) of the Building and
Construction Industry Security of Payment Act 1999 (NSW)
(Act) where the amount scheduled is less than the
amount claimed.
Facts
On 30 July 2019, Cemco Projects Pty Limited, the respondent
(contractor), and Joye Group Pty Limited, the
appellant (subcontractor), entered two
subcontracts for works at a development in Alexandria. One
subcontract was for the supply and installation of timber flooring
and the other for tiling.
