Parkview Constructions Pty Ltd v Futuroscop Enterprises Pty Ltd [2023] NSWSC 178

Supreme Court New South Wales

Medium Neutral Citation: Parkview Constructions Pty Ltd v Futuroscop Enterprises Pty Ltd [2023] NSWSC 178 Hearing dates: 29 August 2022, 1, 5, 6, 8, 15 September 2022; last submissions 14 November 2022. Date of orders: 2 March 2023 Decision date: 02 March 2023 Jurisdiction: Equity - Commercial List Before: Rees J Decision: Plaintiff entitled to damages and return of bank guarantee. Defendant entitled to liquidated damages and rectification costs. Parties to bring in short minutes. Catchwords: BUILDING AND CONSTRUCTION — design and construct contract AS4902-2000 — contractor to construct two buildings — airport hotel and long stay carpark — to be completed in September 2017 —principal wishes to use hotel rooftop for tenants — development consent does not approve this use — hotel and carpark tenants commence operations in September 2017 – occupation certificate limits use of rooftop terrace to maintenance only – principal maintains practical completion yet to be achieved. PRACTICAL COMPLETION — superintendent to issue certificate of practical completion — 'conditional' certificates issued for each building — retrospective date of practical completion on satisfaction of conditions — whether 'conditional' certificates comprise a certificate of practical completion — case law review at [205]-[209] — whether can give a retrospective date at [212]-[213] — 'conditional' certificates have no contractual force. DETERMINATION BY COURT— whether Court can determine date of practical completion — consideration of Abergeldie Contractors v Fairfield City Council — does not depend on Superintendent having been "manifestly unreasonable" – contractual standard is 'reasonable' — whether Court can determine liquidated damages. LIQUIDATED DAMAGES — superintendent's certificate did not comply with the contract — whether Court can ascertain liquidated damages — liquidated damages calculated using objective criterion — Court can determine correct sum. DAMAGES — contractual regime for notifying and remedying defects — whether contract ousts common law damages — caselaw review at [248]-[253] — contract created exhaustive code governing parties' rights regarding defects — common law damages not available — contractual regime not followed — unnotified defects apparent on reasonable inspection — not entitled to costs of rectification for such defects. BUILDING AND CONSTRUCTION — security — contractor substitutes cash retention for bank guarantee — whether principal entitled to retain GST on cash retention until bank guarantee returned —GST payable on release of retention. Legislation Cited: Environmental Planning & Assessment Act 1979 (NSW) ss 4.2, 4.3 A New Tax System (Goods and Services Tax) Act 1999 (Cth) ss 9-10, 40-5, 99-1 A New Tax System (Goods and Services Tax) Regulations 2019 (Cth) reg 40-5.09(3) Cases Cited: Abergeldie Contractors Pty Ltd v Fairfield City Council [2017] NSWCA 113 Administration of Papua and New Guinea v Daera Guba (1973) 130 CLR 353 Agricultural & Rural Finance Pty Ltd v Gardiner (2008) 238 CLR 570; [2008] HCA 57 Australian Broadcasting Commission v Australasian Performing Right Assn Ltd (1973) 129 CLR 99; [1973] HCA 36 Bedrock Construction and Development Pty Ltd v Crea [2021] SASCA 66 Bellgrove v Eldridge (1954) 90 CLR 613; [1954] HCA 36 Bitannia Pty Ltd v Parkline Constructions Pty Ltd [2009] NSWSC 1302 Bitannia Pty Ltd v Parkline Constructions Pty Ltd [2009] NSWSC 1302 Concut Pty Ltd v Worrell (2000) 176 ALR 693; [2000] HCA 64 Dasreef Pty Ltd v Hawchar (2011) 243 CLR 588; [2011] HCA 21 Ecosse Property Holdings Pty Ltd v Gee Dee Nominees Pty Ltd (2017) 261 CLR 544; [2017] HCA 12 Electricity Generation Corporation v Woodside Energy Ltd (2014) 251 CLR 640; [2014] HCA 7 Gilbert-Ash (Northern) Ltd v Modern Engineering (Bristol) Ltd [1974] AC 689 Hacer Group Pty Ltd v Euro Façade Tech Export Sdn Bhd [2022] VSC 373 Ian Delbridge Pty Ltd v Warrandyte High School Council [1991] 2 VR 545 JR Consulting & Drafting Pty Ltd v Cummings (2016) 239 ALR 625; [2016] FCAFC 20 Kenneth McMahon & Partners Pty Ltd v Domain Investments Pty Ltd (1973) 47 ALJR 240 Legal & General Life Australia Ltd v A Hudson Pty Ltd (1985) 1 NSWLR 314 Lym International Pty Limited v Marcolongo [2011] NSWCA 303 Mannai Investment Co Ltd v Eagle Star Life Assurance Co Ltd [1997] AC 749 Metro Edgley Pty Limited v MK & JA Roche Pty Limited [2007] NSWCA 160 MLW Technology v May [2005] VSCA 29 Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd (2015) 256 CLR 104; [2015] HCA 37 National Roads & Motorists' Association v Whitlam (2007) 25 ACLC 688; [2007] NSWCA 81 Official Assignee of Hutson v The New Zealand Antimony Company (Ltd) (1890) 10 NZLR 143 Owners - Strata Plan No 74602 v Brookfield Australia Investments Ltd [2015] NSWSC 1916 Owners Corporation Strata Plan 61288 v Brookfield Multiplex [2012] NSWSC 1219 Pacific Carriers Ltd v BNP Paribas (2004) 218 CLR 451; [2004] HCA 35 Queensland Phosphate Pty Limited v Korda (as joint and several liquidators of Legend International Holdings Inc (in liq)) [2017] VSCA 269 RCR O'Donnell Griffin Pty Ltd [2015] QSC 186 RCR O'Donnell Griffin Pty Ltd v Forge Group Power Pty Ltd [2016] QCA 214 Re Arbitration between CME Contractors Pty Ltd and Redcliffe City Council (Unreported, Supreme Court of Queensland, Dowsett J, 8 September 1987) Republic of Turkey v Mackie Pty Ltd [2019] VSC 103 Stuart Pty Ltd v Feteni Pty Ltd; Coogee Sands Apartments Pty Ltd v Stuart Pty Ltd [2004] NSWSC 237 The Owners Strata Plan 62930 v Kell & Rigby Holdings Pty Ltd [2010] NSWSC 612 Turner Corporation Pty Ltd v Austotel Pty Ltd (1994) 13 BCL 378 Walton v Illawarra [2011] NSWSC 1188 Whitworth Street Estates Ltd v Miller [1970] AC 583 WMC Resources Ltd v Leighton Contractors Pty Ltd (1999) 20 WAR 489; [1999] WASCA 10 Texts Cited: Goods and Services Tax Ruling GSTR 2000/29, Goods and services tax: attributing GST payable, input tax credits and adjustments and particular attribution rules made under section 29-25 (11 December 2013) A New Tax System (Goods and Services Tax) Act 1999 (Cth); Goods and Services Tax Ruing GSTR 2006/1, Goods and services tax: guarantees and indemnities (11 December 2013) Category: Principal judgment Parties: Parkview Constructions Pty Ltd (Plaintiff) Futuroscop Enterprises Pty Ltd as trustee for Mascot Regal Holdings Unit (Defendant) Representation: Counsel: Mr M Ashhurst SC / Mr A Vincent (Plaintiff) Mr IGB Roberts SC / Mr H Pintos-Lopez / Mr J Pen (Defendant)