Thomson Geer succeeded in establishing legal precedent for the construction industry in New South Wales in a case relating to payment claims and payment schedules made under the Building and Construction Industry Security of Payment Act.
The decision by the NSW Court of Appeal in Turnkey Innovative Engineering Pty Ltd v Witron Australia Pty Ltd [2023] NSWSC 981 upheld a Supreme Court decision that an email sent by the Head Contractor in response to the Contractor's payment claim did not constitute a valid payment schedule.
The decision was significant as it established that principals and head contractors must ensure that a payment schedule responds to each distinct and substantial component of a payment claim for which the scheduled amount is less than the claimed amount. In addition, any reasons for withholding payment must be sufficient to apprise the parties of the issues in dispute.
Simon Ralton lead the Thomson Geer team, with the assistance of Senior Associate Divya Chaddha.