Ventia Australia Pty Ltd v BSA Advanced Property Solutions (Fire) Pty Ltd [2021] NSWSC 82
FACTS
Ventia Australia Pty Ltd (Ventia) sub-contracted with BSA Advanced Property Solutions (Fire) Pty
Ltd (BSA) for construction works under a periodic subcontract which allowed for the issue of work
orders by Ventia to BSA for the provision of specific works, which were to be governed by the
terms of the periodic subcontract.
After disputes arose, a payment claim was made for payments under a number of work orders and
confirmed by an adjudication award. Ventia then applied to the NSW Supreme Court to have the
adjudicated award overturned on the basis that the progress claim was made under more than one
contract.
Ventia argued that each work order constituted a separate contract for the purposes of the Building
and Construction Industry Security of Payment Act 1999 (NSW) (SOPA) and BSA argued that
there was only one contract between the parties, being the original periodic subcontract.
ISSUES
The court considered that the application of the so called ‘One Contract Rule’ would make the
payment claim invalid and upheld the rule.
If the work had been done under the periodic subcontract, the challenge would be defeated, and if
the work orders resulted in the creation of multiple contracts, individual claims would have to be
made in respect of each contract.
FINDING
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