Building law passes early test

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Tuesday 23 March 2004

Advocates of the new Construction Contracts Act say one of the first cases to go to court has proved the legislation's strength.

By The Landlord

Building Subcontractors Federation chief executive Peter Degerholm and disputes arbitrator Geoff Bayley said a judgment in a North Shore case had reinforced the need for the act and showed that its provisions worked.

In the case, Jim Brennan's TUF Panel Construction sued Robert Capon of Creamala Developments and Newco Construction.

The matter was heard in the North Shore District Court last month and Judge David Wilson delivered a reserved judgment last week, finding in favour of Brennan and ordering that Capon pay more than $82,000.

The case arose after Capon contracted Brennan to manufacture tilt-up formwork concrete panels for an industrial/residential building project in Albany.

Brennan said after the case that TUF manufactured more than 90 per cent of the 30-plus panels and subsequently billed Capon, who had made progress payments of $19,000.

When the full bill was unpaid by November, Brennan sought summary judgment under the Construction Contracts Act 2002. The act came into force in April last year.

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