The next time you are passing through the Gold Coast Airport (airport), perhaps on your way to your holiday destination, spare a thought for BCS Airport Systems Pty Ltd (BCS) which had anything but a relaxing time when it contracted with Lendlease Building Pty Ltd (Lendlease) to undertake a portion of head contract works on the airport.
What might make the airport a desirable location for some made it a headache for BCS in seeking to recover a payment claim made under Queensland’s security of payment legislation, the Building Industry Fairness (Security of Payment) Act 2017 (Qld).
The airport is dissected by the border between New South Wales and Queensland and where the construction work the subject of the contract was performed.[1] The airport is a designated “Commonwealth place”[2] under the Commonwealth Places (Application of Laws) Act 1970 (Cth) (CPAL Act); and, on 6 December 2022 an adjudicator determined, in respect of BCS’s payment claim made under the BIF Act, that Lendlease was liable to pay BCS the sum of $995,081.18.
Lendlease applied to the Queensland Supreme Court to have the determination declared, at least in part, void. Lendlease’s application was founded, amongst other reasons, upon section 61(4) of the BIF Act which says:
“This chapter does not apply to a construction contract to the extent it deals with construction work carried out outside Queensland or related goods and services supplied for construction work carried out outside Queensland.”
Authors:
Robert Riddell, Partner
Email: RRiddell@piperalderman.com.au
Hamish Appleyard, Associate
Email: happleyard@piperalderman.com.au