Building & Construction Industry Security of Payments Act Case Study

Colemans Group was established in 1984 and has progressed to become Australia’s commercial fencing suppliers and in turn have become a truly diversified perimeter high security business. They have range of clients including Transgrid and Railcorp, Bovis Lend lease, Layton’s, Department of Education, Integral Energy and even the New Zealand Navy.

Colemans Group came to Hones Lawyers when they had difficulty being paid for building and construction works they had undertaken for a state owned corporation. Their problems with that corporation were increased when the corporation refused to return a million dollar bank guarantee for works that had been completed over 2 years previously. Our job was to secure payment and the return of the bank guarantee in the most expeditious and cost effective manner possible.

We sat down in conference with the decision makers and management of Colemans and decided upon a course of action to facilitate payment by using the payment regime under the Building and Construction Industry Security of Payments Act. We drafted a payment claim for Colemans Group and advised Colemans on how that claim was to be served. We ensured that the regime under the Building and Construction Industry Security of Payments Act was followed and properly documented.

Ultimately there was no reply to the payment claim which facilitated Colemans Group applying for summary judgment in the Supreme Court. We drafted all of the Supreme Court documents for Colemans Group including the Summons, Notice of Motion and evidence.

Once the Court documents were filed this facilitated proper negotiations with the state owned corporation.

Ultimately Colemans Group recovered a considerable payout as well as the return of their bank guarantee without actually having to run a Court hearing – a very cost effective, and satisfactory result for our client.