Trans Australian Constructions Pty Ltd v Nilsen (SA) Pty Ltd and Ford

(2008) 23 NTLR 123; [2008] NTSC 42

Supreme Court of the Northern Territory

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Interrogate

Catchwords

1. Building and Construction Law
2. › Security of payments legislation
3. › Adjudication determination
4. › Validity of determination
5. › Whether adjudicator failed to determine issue referred
6. › Whether adjudicator stepped outside jurisdiction
7. › Construction Contracts (Security of Payments) Act (NT), ss 4, 8, 27, 33, 38, 40, 45
1. Building and Construction Law
2. › Security of payments legislation
3. › Payment claims
4. › Essential requirements of valid payment claim
5. › Whether objective compliance with all contractual payment claim provisions required
6. › Distinction between essential requirements and matters for adjudicator's determination
7. › Construction Contracts (Security of Payments) Act (NT), s 4
1. Building and Construction Law
2. › Security of payments legislation
3. › Payment claims
4. › Whether invoices not complying with contractual timing and frequency requirements were valid payment claims
5. › Whether issues of timing and frequency are jurisdictional prerequisites or matters for adjudicator
6. › Construction Contracts (Security of Payments) Act (NT), ss 4, 8
1. Contract
2. › Termination
3. › Termination for convenience
4. › Whether rights accrued prior to termination survive termination
5. › Whether contractual termination clause extinguished pre-existing payment claims

Quick Take

Under the Construction Contracts (Security of Payments) Act (NT), a valid payment claim requires only five essential elements: (1) it must be made under a construction contract; (2) it must be in writing; (3) it must be bona fide; (4) it must state the amount claimed; and (5) it must sufficiently identify and describe the obligations performed. Contractual requirements as to timing, frequency and calculation methodology of payment claims are matters for the adjudicator to determine and do not go to the validity of the adjudication. Rights to payment that accrued under a construction contract prior to termination for convenience survive the termination.