|
It’s a quiet Saturday afternoon. The cranes stand still, the excavators are parked, and most of the crew have gone home to their families. Yet, behind the scenes, the project doesn’t really sleep. An email pings into a company’s inbox—a payment claim. Nobody reads it that day. Nobody even sees it until Monday morning.
For many contractors, subcontractors, and clients, that scenario feels harmless. But in the world of construction law, timing is everything. The moment that email landed, the statutory clock had already started ticking. By the time the office opened again, precious days had already been lost. This was precisely the issue at the heart of Martinus Rail Pty Ltd v Co-Operative Bulk Handling Ltd [2025] WASC 373. The case reminds us that the construction industry runs not only on concrete and steel, but also on strict legal timelines designed to keep cash flowing. As an adjudicator, I see time and again how the smallest detail—like the day or even the hour a claim is served—can determine the outcome of a dispute. And as this case shows, what counts as “served” in one country may be treated very differently in another. Martinus Rail Pty Ltd v Co-Operative Bulk Handling Ltd [2025] WASC 373 Court / Jurisdiction: Supreme Court of Western Australia. Facts
Issues
Decision
Significance
Practical Lessons for Adjudicators / Contractors / Claimants
Adjudicator’s Perspective From the vantage of someone who adjudicates (or presides over security-of-payment / construction payment disputes), this case is a reminder of how strictly the courts will enforce SOPA’s timing provisions. The statute’s purpose of ensuring cash flow in the construction industry depends on certainty and predictability: parties must know that when payment claims are served, the clock starts ticking, regardless of weekends or inconvenient contract clauses. From a fairness perspective, this helps claimants who cannot control business hours; from a process perspective, it imposes diligence on respondents. Contrast with New Zealand’s CCA 2002 In New Zealand, the Construction Contracts Act 2002 defines “working day” strictly. Documents (including payment claims and payment schedules) must be served during working days only—weekends and public holidays are excluded from the calculation.
Both approaches reveal the policy balance between protecting cash flow (strict timeframes in WA) and ensuring procedural fairness (working-day service in NZ). For practitioners, it underscores the importance of knowing which statutory regime governs—what is effective service in one jurisdiction may be invalid in another. Takeaway Internationally, security of payment legislation shares the same goal—cash flow—but the mechanics differ. Understanding the nuances between regimes like WA’s SOPA and NZ’s CCA 2002 is crucial for contractors, consultants, and adjudicators alike.
0 Comments
|
AuthorJoem is a Dispute Resolution Practitioner, Construction Law specialist and a practicing Quantity Surveyor with a strong background in Civil Engineering and Project Management. ArchivesCategories |
RSS Feed
