Under clause 1.6(b) of the QBCC statutory insurance policy, payments for building work that has not been performed are 'prepayments' regardless of whether the owner was deceived by fraudulent progress claims, and regardless of the contractual obligation to pay progress claims within a specified time. The QBCC is entitled to reduce the amount payable under the policy by the value of such prepayments. The prepayment clause operates on the sole objective question of whether the work has been done, not on the terms of the particular building contract or the parties' states of mind.
The full text is available to signed-in members, including the 3 later cases that cite this judgment.
1 of the 3 citing cases carry a classified treatment. How each court treated it is available to signed-in members.