In Probuild Constructions (Aust) Pty Ltd v Shade Systems Pty Ltd & Anor [2018] HCA 4 and in Maxcon Constructions Pty Ltd v Vadasz [2018] HCA 5 the High Court had cause to consider whether challenges to decisions of adjudicators under the SoPA could include non-jurisdictional errors of law.
The SoPA legislation was enacted to facilitate cash flow to primarily subcontractors by providing a quick, cheap and informal procedure to settle payment disputes by adjudications.
The High Court held that these principles could well be thwarted if challenges by way of judicial review were available for every error of law. The judicial review process has time and cost implications and may delay prompt enforcement of the determinations and negate the cash flow advantages.
This is good news for subcontractors and suppliers serving claims on head contractors.
This decision means that now, an adjudication determination can only be overturned if the head contractor can establish that the adjudicator did not have jurisdiction to determine the application in the first place. One set of floodgates now appears shut.
Clare Peacock, Principal solicitor at Northern Beaches Construction Lawyers, provides practical advice on the many issues that can and do arise from residential living, building works, construction contracts, and strata living. These regulations are a complex web of statutes, by-laws, regulations, case law and know-how, and involving a number of parties and their obligations. It is important, when these issues arise, to involve a lawyer who is familiar with the specific area of law. This is where Clare can help.
Clare Peacock
Principal Solicitor
Northern Beaches Construction Lawyers