Pay Now, Arbitrate Later

Pay Now, Arbitrate Later

Martinus Rail Pty Ltd v Qube RE Services (No.2) Pty Ltd [2025] NSWCA 49

FACTS
Martinus Rail Pty Ltd (the Subcontractor) entered into construction contracts with Qube RE Services (the Head Contractor) for works on the Moorebank Intermodal Terminal Project. Disputes arose over progress payments, leading Martinus to initiate adjudication proceedings under the Building and Construction Industry Security of Payment Act 1999 (NSW) (SOPA). The adjudicator determined Qube was liable to pay a significant amount. The adjudicator determined Qube was liable to pay a significant amount – over $8.6 million.

Qube sought to set aside the adjudication decisions or, alternatively, stay enforcement pending the resolution of the underlying dispute via arbitration, as provided for in the contracts.

ISSUES

Can adjudication decisions under SOPA be stayed or set aside due to a pending arbitration process under the contract?

How do contractual arbitration clauses interact with statutory adjudication mechanisms?

FINDING…

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