Not All Bonds Are Created Equal: When Security of Payment Overrides Contractual Security

Alstef Australia Pty Ltd v Brisbane Airport Corporation [2026] NSWSC 764

FACTS

This matter was heard in NSW in relation to the Building Industry Fairness (Security of Payment) Act 2017 (Qld)(the Act).

Brisbane Airport Corporation (BAC) hired Alstef to build a new baggage handling system for the domestic terminal at Brisbane Airport.

The contract provided for performance bonds and for payment security bonds, the latter of which represented security for unfixed goods supplied but not delivered to site.

A defect was discovered and the contract was terminated. The court has not finally determined which party validly terminated the contract.

ISSUE

Could BAC call on the performance and security bonds?

FINDING…