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ARTICLE · 31 JULY 2013

Recent BCIPA claim decision has implications for the mining industry

Cooper Grace Ward
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Organisations carrying out 'construction work' on land of mining leases may need to rethink their payment arrangements.

AustraliaReal Estate and Construction
Rocco Russo
Rocco Russo
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Organisations carrying out work in the mining industry may need to rethink their payment arrangements following the recent Supreme Court case of Agripower Australia Ltd v J & D Rigging Pty Ltd & Ors [2013] QSC 164.

In this case, the Court decided that work carried out on land subject to a mining lease was not 'construction work' under the Building and Construction Industry Payments Act 2004 (Qld) (BCIPA).

Background

Agripower was the owner of a mining plant based at the Skardon River Mine at Cape York. The land on which the mine is situated is subject to certain mining leases.

In June 2012, Agripower engaged J & D Rigging to dismantle and remove a plant located at the mine. On 30 November 2012, J & D delivered a payment claim to Agripower under the BCIPA contending that Agripower owed it $3.1 million for construction work.

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