Witron Australia Pty Ltd v Turnkey Innovative Engineering Pty Ltd [2023] NSWCA 305

Witron Australia Pty Ltd v Turnkey Innovative Engineering Pty Ltd [2023] NSWCA 305

The respondent’s email did not constitute a valid payment schedule for the purposes of s 14 of the Building and Construction Industry Security of Payment Act 1999 (NSW) because, while it provided a reason for withholding payment in respect of the base contract works, it did not provide any reason in relation to the distinct and substantial component of 'contract variation works', thus failing to meet the statutory requirements.

Jurisdiction
Australia
Judgment Date
13 December 2023
Procedural Posture
Appeal / Court of Appeal—judgment Following Appeal From Supreme Court Equity – Technology and Construction List
Outcome
Appeal dismissed
Legal Topics
['payment Schedule Requirements' 'building and Construction Industry Security of Payment Act 1999 (nsw)' 'progress Claims' 'statutory Interpretation – Sufficiency of Payment Schedules' 'dispute Resolution Under Construction Contracts']
['building and Construction Law'] ['payment Schedule Requirements' 'building and Construction Industry Security of Payment Act 1999 (nsw)' 'progress Claims' 'statutory Interpretation – Sufficiency of Payment Schedules' 'dispute Resolution Under Construction Contracts']

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Procedural Posture

Appeal / Court of Appeal—judgment Following Appeal From Supreme Court Equity – Technology and Construction List

Legal Issues

  1. 1 ['What are the statutory requirements for a payment schedule under s 14(3) of the Building and Construction Industry Security of Payment Act 1999 (NSW)?' 'Does a response which provides reasons for some, but not all, distinct and substantial components of a payment claim satisfy s 14(3) of the Act?' 'Did the email sent by Witron Australia Pty Ltd constitute a valid payment schedule for the purposes of the Act?']

Ratio Decidendi

The respondent’s email did not constitute a valid payment schedule for the purposes of s 14 of the Building and Construction Industry Security of Payment Act 1999 (NSW) because, while it provided a reason for withholding payment in respect of the base contract works, it did not provide any reason in relation to the distinct and substantial component of 'contract variation works', thus failing to meet the statutory requirements.

Court Disposition

Appeal dismissed

Orders

  • ['Appeal dismissed.' "Appellant to pay the respondent's costs."]