Probuild Constructions (Aust) Pty Ltd v DDI Group Pty Ltd [2017] NSWCA 151

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Probuild Constructions (Aust) Pty Ltd v DDI Group Pty Ltd [2017] NSWCA 151 Hearing dates: 15 September 2016 Decision date: 23 June 2017 Before: Beazley ACJ at [1], McColl JA at [2], Macfarlan JA at [146] Decision: Appeal dismissed with costs. Catchwords: BUILDING AND CONSTRUCTION – subcontract for renovation works – payment claim under Building and Construction Industry Security of Payment Act 1999 (NSW) – where variations directed by principal after Date for Practical Completion – where Date of Practical Completion 114 days late – where principal sought to reduce payment claim to nil by way of set-off based on liquidated damages claim for delayed completion

ADMINISTRATIVE LAW – procedural fairness – where adjudicator rejected liquidated damages claim – whether adjudicator applied prevention principle – whether application of prevention principle denial of procedural fairness Legislation Cited: Building and Construction Industry Security of Payment Act 1999 (NSW) Civil Procedure Act 2005 (NSW) Uniform Civil Procedures Rules 2005 (NSW) Cases Cited: 620 Collins Street Pty Ltd v Abigroup Contractors Pty Ltd (No 2) [2006] VSC 491 Abel Point Marina (Whitsundays) Pty Ltd v Uher [2006] QSC 295 Alcatel Australia Ltd v Scarcella (1998) 44 NSWLR 349 Built Environs Pty Ltd v Tali Engineering Pty Ltd [2013] SASC 84 Cardinal Project Services Pty Ltd v Hanave Pty Ltd (2011) 81 NSWLR 716; [2011] NSWCA 399 Chase Oyster Bar Pty Ltd v Hamo Industries Pty Ltd (2010) 78 NSWLR 393; [2010] NSWCA 190 Clarence Street Pty Ltd v Isis Projects Pty Ltd (2005) 64 NSWLR 448; [2005] NSWCA 391 Falgat Constructions Pty Ltd v Equity Australia Corp Pty Ltd (2005) 62 NSWLR 385; [2005] NSWCA 49 Gaymark Investments Pty Ltd v Walter Construction Group Ltd (1999) 16 BCL 449; [1999] NTSC 143 Gipping Construction Ltd v Eaves Ltd [2008] EWHC 3134 (TCC) Grocon Constructors Pty Ltd v Planit Cocciardi Joint Venture (No 2) (2009) 26 VR 172; [2009] VSC 426 Hawkins Construction (Aust) Pty Ltd v Mac's Industrial Pipework Pty Ltd [2002] NSWCA 136 Holme v Guppy (1838) 150 ER 1195; 3 M&W 387 John Holland Pty Ltd v Roads and Traffic Authority of New South Wales [2007] NSWCA 140 Kioa v West (1985) 159 CLR 550; [1985] HCA 81 Multiplex Constructions Pty Ltd v Luikens [2003] NSWSC 1140 Multiplex Constructions (UK) Ltd v Honeywell Control Systems Ltd (No 2) [2007] EWHC 447 Musico v Davenport [2003] NSWSC 977 Nepean Engineering Pty Ltd v Total Process Services Pty Ltd (in liq) (2005) 64 NSWLR 462; [2005] NSWCA 409 Northbuild Construction Pty Ltd v Central Interior Linings Pty Ltd [2012] 1 Qd R 525; [2011] QCA 22 Peak Construction (Liverpool) Ltd v McKinney Foundations Ltd [1970] 1 BLR 111 Peninsula Balmain Pty Ltd v Abigroup Contractors Pty Ltd [2002] NSWCA 211; (2002) 18 BCL 322 Re Minister for Immigration and Multicultural Affairs; Ex parte Lam (2003) 214 CLR 1; [2003] HCA 6 Re Refugee Review Tribunal; Ex parte Aala (2000) 204 CLR 82; [2000] HCA 57 RJ Neller Building P/L v Ainsworth [2009] 1 Qd R 390; [2008] QCA 397 Secured Income Real Estate (Aust) Ltd v St Martins Investments Pty Ltd (1979) 144 CLR 596; [1979] HCA 51 Shade Systems Pty Ltd v Probuild Constructions (Aust) Pty Ltd (No 2) [2016] NSWCA 379 Shellbridge Pty Ltd v Rider Hunt Sydney Pty Ltd [2005] NSWSC 1152 SMK Cabinets v Hili Modern Electrics Pty Ltd [1984] VR 391 Southern Han Breakfast Point Pty Ltd (in liq) v Lewence Construction Pty Ltd [2016] HCA 52; (2016) 91 ALJR 233 Spiers Earthworks Pty Ltd v Landtec Projects Corp Pty Ltd (No 2) (2012) 287 ALR 360; (2012) 28 BCL 282; [2012] WASCA 53 Stead v State Government Insurance Commission (1986) 161 CLR 141; [1986] HCA 54 TransGrid v Walter Construction Group Ltd [2004] NSWSC 21 Turner Corporation Ltd (in liq) v Co-ordinated Industries Pty Ltd (1994) 11 BCL 202 Turner Corporation Ltd (in prov liq) v Co-ordinated Industries Pty Ltd (1995) 12 BCL 33 Turner Corp Pty Ltd (recv & mgr apptd) v Austotel Pty Ltd (1997) 13 BCL 378 Watpac Constructions v Austin Corp [2010] NSWSC 168 Texts Cited: Hudson's Building and Engineering Contracts (12th ed, 2010, Sweet & Maxwell) Hudson's Building and Engineering Contracts (13th ed, 2015, Sweet & Maxwell) New South Wales, Legislative Assembly, Parliamentary Debates (Hansard), 8 September 1999 New South Wales, Legislative Assembly, Parliamentary Debates (Hansard), 12 November 2002 I Duncan, "Prevention and Liquidated Damages: a Theory Too Far" (2002) 18 BCL 82 Category: Principal judgment Parties: Probuild Constructions (Aust) Pty Ltd (Appellant) DDI Group Pty Ltd (First Respondent) Ian Hillman (Second Respondent) Representation: Counsel: S Robertson and P F Santucci (Appellant) M Galvin and B Douglas-Baker (First Respondent) Submitting Appearance (Second Respondent)