Construction litigation

Litigation in construction

This is a construction matter listed at NCAT. After more than two years of litigation, the final decision has finally arrived. Our construction team has been representing the applicant, who is the owner in these proceedings. The defendant is a construction company and was engaged by the owner to carry out some construction and renovation works on the owner’s premises.

The case revolves around the respondent’s failure to complete the construction of the applicant’s premises according to the agreed terms, conditions, time, specifications, and quality. The respondent allegedly threatened the applicant, stating that without a contract and receipts, it would be difficult for the applicant to file a lawsuit unless the owner pay additional money, otherwise, the project would be put on hold and the owner would incur further costs renting a property as no occupation certificate could be issued unless the builder finished his works.

The case itself is very complicated and lacks forensic evidence. There is no written contract, only numerous verbal agreements and chaotic chat records. Payments were made in cash, making it difficult for the applicant to prove (1) payment records and (2) the agreed scope of the construction works. The builder company also filed a cross-claim alleging a breach of agreement of the applicant and sought remedies. And the applicant’s instructions was to get a money order rather than the ordinary work order.

After extensive investigation and preparation, the NCAT tribunal ruled in favor of the Applicant last year, ordering the respondent to pay $40,000 AUD in a money order. However, we believed the amount was too low and advised the client to appeal. Today, the appeal was successful, a money order of $60,000 AUD and an ordinary costs order was given in favour of the applicant.

Case number: HB 21/28822

Be cautious when engaging in transactions without proper formal contracts and legal advice.

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