Thomson Geer has advised Turnkey Innovative Engineering Pty Ltd in the NSW Court of Appeal case, Turnkey Innovative Engineering Pty Ltd v Witron Australia Pty Ltd [2023] NSWSC 981, resulting a favourable outcome for Turnkey and establishing a legal precedent for the construction industry in New South Wales. The decision by the NSW Court of Appeal 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.
As a result, the Head Contractor became liable to pay the Contractor (our client) the full amount claimed together with interest and costs.
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.