News & Analysis as of

Australia Construction Contracts

Herbert Smith Freehills Kramer

Time’s Up: NSW Court of Appeal Reminder About the Importance of Understanding and Hitting Security of Payment Deadlines

The NSW Court of Appeal in Roberts Co (NSW) Pty Ltd v Sharvain Facades Pty Ltd (Administrators Appointed) [2025] NSWCA 161 has confirmed that, under the Building and Construction Industry Security of Payment Act 1999 (NSW)...more

Jones Day

Significant Reforms on the Horizon for Security of Payment in Victoria’s Construction Industry

Jones Day on

Like similar regimes in other States, the Building and Construction Industry Security of Payment Act 2002 (VIC) (“Victorian SOPA”) was intended to reduce insolvency in the construction industry and enhance cash flow for...more

K&L Gates LLP

WA Regulation of Performance Security in Contracts

K&L Gates LLP on

All participants in the construction industry should be aware of legislative provisions that apply to performance security in more recent construction contracts for projects in Western Australia. The changes create new...more

A&O Shearman

New Australian case pushes maximum penalties for corporate wrongdoing higher

A&O Shearman on

Given the widespread use of “benefit” to calculate penalties across the corporate landscape, a new Australian High Court decision could have a significant impact on all corporations and directors that face civil or criminal...more

Jones Day

Pay Now, Argue Later—Even if the Contractor is Going Bust: The NSW Security of Payment Regime and Distressed Contractors

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In Short - The Situation: Security of payment ("SOP") legislation across Australia provides a "pay now, argue later" regime for payment claims by contractors in the construction industry. The legislation expressly...more

K&L Gates LLP

Legislative Corrosion of Time Bars in Construction Contracts

K&L Gates LLP on

Principals, contractors, and other building industry participants should take the opportunity in early 2023 to review contracts and procurement practices, specifically with respect to time bars in standard form contracts. ...more

King & Spalding

Mandatory human rights due diligence – what does it mean for companies in the international construction sector?

King & Spalding on

A new wave of mandatory human rights due diligence legislation is coming into force across Europe. It goes far beyond existing reporting obligations, such as under the UK or Australia’s Modern Slavery Acts, and will require...more

Jones Day

No Exceptions to Procedural Requirements Under Australia's Security of Payments Legislation

Jones Day on

The Situation: For over a decade, all Australian jurisdictions have had in place security of payment ("SOP") legislation—statutory regimes providing for the submission and payment of progress claims, and resolution of payment...more

Jones Day

An Update on Insolvency in the Australian Construction Industry

Jones Day on

The construction sector in Australia has long been affected by insolvency and broader liquidity issues. In the last year, construction companies accounted for 26% of businesses that entered into insolvency, and insolvencies...more

K&L Gates LLP

Western Australia Set for Commencement of New Progress Payment Regime Under the Building and Construction Industry (Security of...

K&L Gates LLP on

Commencing from 1 August 2022, Western Australia will adopt a new statutory progress payment regime under the Building and Construction Industry (Security of Payment Act) 2021 (WA) (WA SOP Act). The WA SOP Act will change...more

White & Case LLP

Constructive acceleration successfully claimed

White & Case LLP on

Outside of the United States, claims for constructive acceleration usually fail. However, in a recent Australian case such a claim succeeded. Does this now open the way for contractors to deploy constructive acceleration...more

White & Case LLP

Managing construction risks in Asia-Pacific: Australia

White & Case LLP on

Australia is a highly advanced mixed economy, but investors – often drawn to the country's economic stability and resilience – should be aware of certain clauses that typically appear in construction contracts. Australia...more

K&L Gates LLP

Owner-Occupiers Beware: NSW Security of Payment Act Now Applies

K&L Gates LLP on

The last remaining exemption for owner-occupier construction contracts from the operation of the Building and Construction Industry Security of Payment Act 1999 (NSW) (SOP Act) was repealed on 1 March 2021. Contractors under...more

Jones Day

Security of Payment Legislation in Australia

Jones Day on

Australia-wide, companies are navigating the uncertainties arising from COVID-19. Our previous White Papers identified the risks arising for construction projects and observed that the fallout is likely to give rise to...more

Jones Day

Western Australia Proposes Building and Construction Industry (Security of Payment) Bill 2020

Jones Day on

The Western Australian government has sought industry comment on a suite of significant proposed reforms to the WA security of payment regime ("SOP"). If passed, the Bill represents the most significant reform to the...more

King & Spalding

Tokyo Dispute Resolution & Crisis Management Newsletter – June 2020: Coronavirus & Construction Contracts - Causation, Force...

King & Spalding on

Large construction projects, by their very nature, carry significant commercial and financial risk for the parties involved. Contributing to this overall risk is the reality that an act of nature or other circumstance beyond...more

K&L Gates LLP

Changes to the Security of Payment Act Commence Today – Are you Ready?

K&L Gates LLP on

The changes to the Building and Construction Industry Security of Payment Act 1999 (NSW) (Act) commence on 21 October 2019. The long awaited changes seek to improve the flow of payments to subcontractors and clarify the...more

White & Case LLP

High Court of Australia clarifies the availability of the remedy of restitution on a ‘quantum meruit’ basis

White & Case LLP on

a) On 9 October 2019, in the judgement of Mann v Paterson Constructions Pty Ltd [2019] HCA 32 (Mann), the High Court of Australia clarified the ability for contractors to claim on a quantum meruit basis....more

White & Case LLP

'Common Law Common Sense' delay analysis

White & Case LLP on

In White Constructions Pty Ltd v PBS Holdings Pty Ltd [2019] NSWSC 1166 the Supreme Court of New South Wales, Australia, rejected both parties' expert delay analysis and the methodologies on which they were based, holding...more

White & Case LLP

Construction contracts: "No damage for delay" clause enforced

White & Case LLP on

In a recent case, the Federal Court of Australia confirmed that it will enforce a "no damage for delay" clause, including when delay occurs as a result of a variation under a contract....more

White & Case LLP

Effective service of notices under construction contracts

White & Case LLP on

In the recent case of The Trust Company (Australia) Ltd atf the WH Buranda Trust v Icon Co (Qld) Pty Ltd & Anor [2019] QSC 87, the Supreme Court of Queensland was asked to consider whether a contractual notice served via a...more

K&L Gates LLP

NSW Court of Appeal Quashes Ostwald's Adjudication Determination and Holds That Façade Continues to be 'Plainly Wrong'

K&L Gates LLP on

On 12 February 2019 the NSW Court of Appeal upheld an appeal by Seymour Whyte Constructions Pty Ltd (Seymour Whyte), represented by K&L Gates, relating to proceedings concerning a claim for a substantial progress payment...more

Jones Day

Statutory Protections vs. Freedom of Contract: A Shift in the Balance?

Jones Day on

The Situation: Australian courts have struggled with balancing the broad statutory protections afforded to consumers and businesses whilst giving effect to the contractual bargains of well-advised, sophisticated commercial...more

Jones Day

The End of the "Deemed Liability" Adjudication in Western Australia

Jones Day on

The Problem: The Construction Contracts Act 2004 (WA) contains a number of provisions that are to be implied into construction contracts that are silent as to those matters. These implied terms have been a steady source of...more

Jones Day

Recent Project Dispute Cases in Australia

Jones Day on

The Situation: Statutory adjudications continue to be deployed readily on projects in the construction and engineering fields. The Result: There have been a host of cases on the operation and scope of such adjudications in...more

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