High Court confirms cash flow is crucial

Commercial Directions

Moray & Agnew Newcastle had an emphatic win today for one if its clients in the High Court of Australia in the matter of Probuild Constructions (Aust) Pty Ltd v Shade Systems Pty Ltd [2018] HCA 4.

The Full Court of the High Court unanimously decided that review of an adjudication determination made under the Building and Construction Industry Security of Payment Act 1999 (NSW) is not available for non-jurisdictional errors of law.

This decision affirms the view that the Act operates informally, summarily and quickly to ensure ‘cash flow is the lifeblood of the construction industry’.

The decision has important implications for principals and contractors alike and now provides certainty to the industry as to the circumstances in which an adjudicator’s decision can be reviewed.

Authored by Patrick Kaluski, Partner and Sarah Hammond, Associate, Newcastle.


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