Event and Time
Event Description
On 31 August 2023, the Victorian Civil and Administrative Tribunal (VCAT) ordered Shininggarden Pty Ltd (the owner) to pay Omega Building Group Pty Ltd (the builder) a total of $428,279.97 for outstanding work related to the construction of 11 townhouses in East Doncaster. The owner seeks leave to appeal against this order under Section 148 of the Victorian Civil and Administrative Tribunal Act 1998 (Vic).
Application and Claims
The builder claimed that the owner owed additional payments beyond what had already been settled. The claims fell into two categories: 1. Progress Payment Claims: - Outstanding payments per certified recommendations by the architect and quantity surveyor. - $50,000 from Progress Payment No. 4 and $71,924.78 from Progress Payment No. 11.
2. Extras Claims: - Additional work requested by the owner not formally assessed or approved. - A total of $128,628.30 was claimed for these extras, asserting either a contractual entitlement or unjust enrichment.
Judicial Decisions
VCAT found in favor of the builder on both the progress payment claims and the extras claims. It provided credit for the owner’s counterclaims, predominantly denying those claims but awarding deductions for specific items.
Dispute Points and Legal Basis
Dispute Points
- Builder's Claims:
- Asserted the owner failed to pay certified amounts per the contract. - Claimed extra work performed was either a contractual obligation or resulted in unjust enrichment.
- Owner's Claims/Counterclaims:
- Contested the validity of certain amounts purportedly owed. - Attempted to establish that liquidated damages owed due to alleged delays amounted to $93,585, asserting the builder had agreed to a lower figure.