Adjudication

Tenders - Payment claim - "Latent condition"

In Queensland Bulk Water Supply Authority t/a Seqwater v McDonald Keen Group P/L (in liq) & Anor [2010] QCA 7 (5 February 2010), the Respondent  made a payment claim under the Building and Construction Industry Payments Act 2004 (Qld) in respect of excavation of rock which, it said, comprised a “latent condition” within clause 12.1 of the construction contract. The claim was adjudicated; the adjudicator found excavation of rock constituted latent condition and determined an amount of $11 million as the amount of the progress payment to be made by the Appellant.  Appellant claim decisoin of adjudicator void.  The Queensland Supreme Court found Appellant failed to demonstrate want of good faith on part of adjudicator and dismissed application.  On appeal, the Queensland Court of Appeal found that there was no appealable error.  Appeal dismissed.