EnerMech Pty Ltd v Acciona Infrastructure Projects Australia Pty Ltd [2024] NSWCA 162
FACTS
EnerMech, an electrical subcontractor on the WestConnex M4-M5 Link project, submitted a payment claim under the Building and Construction Industry Security of Payment Act 1999 (NSW) (SOPA) seeking recovery of ~$10.2 million. This included ~$9.2 million drawn by Acciona on EnerMech’s bank guarantees, plus minor variations. Acciona argued the claim was invalid under SOPA, asserting it was not “for construction work” but rather for repayment of security.
At first instance, the Supreme Court agreed with Acciona, quashing the adjudicator’s determination. EnerMech successfully appealed.
ISSUE
Does SOPA allow a contractor to claim under a payment claim amounts corresponding to security drawn down under the construction contract, or must payment claims be limited to “construction work”?
FINDING…
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