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ARTICLE · 08 APRIL 2022

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When dual roles collide: a cautionary tale for principals and superintendents

McCullough Robertson
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Principals must ensure that superintendents appointed to administer contracts do so in accordance with the contracts.

AustraliaReal Estate and Construction
Matt Bradbury
Matt Bradbury
James Arklay
James Arklay
Brittany Parker
Brittany Parker
Adam Pollock
Adam Pollock
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The Victorian Supreme Court case of V601 Developments Pty Ltd v Probuild Constructions (Aust) Pty Ltd [2021] VSC 849 (decided on 22 December 20211) (V601 Developments) is a cautionary reminder that principals:

  • must ensure that superintendents appointed to administer their contracts do so in accordance with such contracts, as a failure to do so will place the principal in breach of contract; and
  • must avoid influencing a superintendent's performance of its independent functions, or colluding with the superintendent in relation to those functions – this includes avoiding the appearance of such conduct.

Background

V601 Developments Pty Ltd (V601) and Probuild Constructions (Aust) Pty Ltd (Probuild) were parties to an amended AS4902-2000 contract (Contract) for Probuild to design and construct a mixed commercial and residential project named 'The Precinct Project' in Victoria (Project). Probuild was to deliver the Project by way of various separable portions,

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