Event and Time
Event Description
The case involves a dispute between Demex Pty Ltd and McNab Building Services Pty Ltd regarding the application of conversion rates for a payment claim under the Building and Construction Industry Security of Payment Act 1999 (NSW). The dispute arose after Demex issued a payment claim for work completed at the Wollomi Warehouse project in Tweed Heads, which involved remediation of asbestos-contaminated materials.
Application and Claims
- Plaintiff: Demex Pty Ltd
- Claimed a total of $2.8 million for removal of contaminated materials and import of clean fill, with quantities measured in cubic metres. - Utilized dockets that provided weights (tonnes) to derive cubic meter volumes based on conversion factors that were not explicitly detailed in the claim.
- Defendant: McNab Building Services Pty Ltd
- Responded with a payment schedule disputing the claim and asserting that Demex owed them money instead. - Criticized Demex's assertion due to lack of proper particulars in its calculation methods and the use of conversion factors which were not stated beforehand.
Judicial Decisions
- Initial adjudicator found that Demex was owed $1,390,882.42 based on the presented claims but was challenged by McNab on the grounds of procedural fairness.
- Supreme Court found that the adjudicator breached procedural fairness by applying conversion factors without the opportunity for McNab to comment, quashing the adjudication.
- Demex appealed the decision and was reinstated as the Court found no substantial procedural fairness issues had occurred.
Dispute Points and Legal Basis
Dispute Points
- Demex's Position:
- Claimed entitlement to payments based on calculations derived from truck dockets and industry standards for conversion. - Argued that McNab’s failure to provide a counter calculation was a strong indication of a lack of substantive dispute.