CO-OPERATIVE BULK HANDLING LTD (ABN 29 256 604 947) -v- MARTINUS RAIL PTY LTD [2026] WASCA 82
[2026] WASCA 82
Page 1
JURISDICTION : SUPREME COURT OF WESTERN AUSTRALIA
TITLE OF COURT : THE COURT OF APPEAL (WA)
CITATION : CO-OPERATIVE BULK HANDLING LTD (ABN 29
256 604 947) -v- MARTINUS RAIL PTY LTD [2026]
WASCA 82
CORAM : THOMSON P
VAUGHAN JA
ARCHER JA
HEARD : 22 MAY 2026
DELIVERED : 19 JUNE 2026
FILE NO/S : CACV 77 of 2025
BETWEEN : CO-OPERATIVE BULK HANDLING LTD (ABN 29
256 604 947)
Appellant
AND
MARTINUS RAIL PTY LTD
Respondent
ON APPEAL FROM:
Jurisdiction : SUPREME COURT OF WESTERN AUSTRALIA
Coram : PALMER J
Citation : MARTINUS RAIL PTY LTD -v- CO-OPERATIVE
BULK HANDLING LTD (ABN 29 256 604 947)
[2025] WASC 373
File Number : CIV 2245 of 2024
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[2026] WASCA 82
Page 2
Catchwords:
Building and construction - Security of payment legislation - Electronic
communications - Time when payment claim served
Statutes - Statutory construction - Regulations referring to time when electronic
communications received being 'in accordance with' s 14 of the Electronic
Transactions Act 2011 (WA) - Statutory exception for agreement about time of
receipt
Legislation:
Building and Construction Industry (Security of Payment) Act 2021 (WA), s 22,
s 23, s 24, s 25, s 26, s 27
Building and Construction Industry (Security of Payment) Regulations 2022
(WA), reg 23
Electronic Transactions Act 2011 (WA), s 14
Result:
Appeal dismissed
Category: A
Representation:
Counsel:
Appellant : Jeffery Gleeson KC & A L Mason
Respondent : S Robertson SC & D Pratt
Solicitors:
Appellant : Corrs Chambers Westgarth
Respondent : Jackson McDonald
Case(s) referred to in decision(s):
Conservation Council of WA Inc v Dawson [2019] WASCA 102; (2019) 240
LGERA 387
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[2026] WASCA 82
JUDGMENT OF THE COURT
Page 3
JUDGMENT OF THE COURT:
1 The Building and Construction Industry (Security of Payment) Act
2021 (WA) (SOP Act) creates a statutory regime designed to facilitate
cash flow for a building contractor. The legislation provides for a
contractor to give a payment claim to its principal for a progress
payment due under a construction contract. The principal has the
opportunity to dispute a payment claim within 15 business days after a
payment claim is made, by giving the contractor a payment schedule
indicating the amount of payment (if any) which the principal proposes
to make. If the principal does not dispute a payment claim within
15 business days after a payment claim is made, the principal becomes
liable to pay the whole of the claimed amount on the due date for the
progress payment.
2 The question in this case concerns when a payment claim for over
$22 million was given, and hence when did the period of 15 business
days after this date expire? The primary judge found that the period of
15 business days had expired prior to the principal serving its payment
schedule. Consequently, the principal was liable to the contractor for a
debt of over $22 million. The principal has appealed.
Facts1
3 The principal is the appellant (CBH), and the contractor is the
respondent (Martinus). The construction contract (Contract)
concerned construction of a rail siding and infrastructure at Broomehill,
Western Australia. The parties entered the Contract on 2 February
2023. It was a construction contract for the purposes of the SOP Act.
The contract price for works under the Contract (as varied) was
$36,731,884.54 (as at 18 July 2023).
4 On 22 August 2024, CBH directed Martinus to omit all works
under the Contract that were otherwise required to achieve practical
completion, which had not been completed as at the end of 31 August
2024.
5 On Saturday 31 August 2024, at around 4.35 pm, an employee of
Martinus sent an email to CBH's representative attaching a payment
claim for $22,646,617.21 (ex GST). This was opened and read on
1 The facts set out here are based upon the Statement of Agreed Facts (GAB 106 - 108), unless otherwise
indicated.
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JUDGMENT OF THE COURT
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Monday 2 September 2024, at around 6.42 am, by CBH's
representative.
6 The substance of the email sent at around 4.35 pm on 31 August
2024 simply stated that:2
Attached is the progress claim and the backup folder.
…
This is a payment claim made under the Building and Construction
Industry (Security of Payment Act) 2021 (WA).
7 The Contract contemplates making a payment claim in clause 33.3
The form of such a payment claim is set out in Schedule J.4 The
sample payment claim in Schedule J commences with the statement
that: 'This is a payment claim made under the Building and
Construction Industry (Security of Payment) Act 2021 (WA)'.5
Consequently, the Contract expressly contemplates that a Payment
Claim under the Contract may also have dual effect as a payment claim
made under the SOP Act.
8 The Contract is governed by the law of Western Australia: cl 57.6
The Public and Bank Holidays Act 1972 (WA) operates to make the
anniversary of the birthday of the reigning sovereign (as gazetted) a
public holiday in Western Australia.7 Monday 23 September 2024 was
gazetted as a public holiday in Western Australia as the Celebration
Day for the Anniversary of the Birthday of the Reigning Sovereign in
2024.8
9 On Tuesday 24 September 2024, at about 4:31 pm, representatives
of CBH sent an email to Martinus attaching a payment schedule in
relation to the payment claim which had been made. The payment
schedule certified the amount of $5,425,550.66 (ex GST) as owing by
Martinus to CBH9 (ie CBH rejected Martinus' payment claim in full and
contended instead that Martinus was liable to make payment to CBH).
2 GAB 522.
3 GAB 163 - 165.
4 See the definition of 'Payment Claim' in clause 1.1 of the Contract (GAB 121).
5 GAB 242.
6 GAB 180.
7 Public and Bank Holidays Act 1972 (WA) s 5, sch 2.
8 Queen's Birthday Holiday 2024 and 2025 Proclamation 2022 (Western Australia, Government Gazette,
No 69, 20 May 2022, 3009).
9 GAB 536.
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[2026] WASCA 82
JUDGMENT OF THE COURT
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10 Notwithstanding this, on Wednesday 25 September 2024,
Martinus gave CBH a tax invoice for the whole of the payment claim,
ie for $22,646,617.21 (ex GST).10
Calculation of time
11 The time period of 15 business days after Saturday 31 August
2024 commenced on Monday, 2 September 2024 and ended on Friday,
20 September 2024. If this is the correct calculation of the time period
of 15 business days after the payment claim was made, the payment
schedule given by CBH to Martinus on Tuesday 24 September 2024
was outside the relevant period.
12 On the other hand, if the payment claim sent on Saturday
31 August 2024 is to be regarded as only having been received by CBH
on Monday 2 September 2024, the time period of 15 business days after
that date began on Tuesday 3 September 2024 and ended on Tuesday
24 September 2024 (taking into account that Monday 23 September
2024 was a public holiday). If this is the correct calculation of the time
period of 15 business days after the payment claim was made, the
payment schedule given by CBH to Martinus was inside the relevant
period.
Relevant provisions of Contract regarding time
13 As explained, a 'Payment Claim' is made under cl 33 of the
Contract, but may also be regarded by the Contract as effective for the
purposes of the SOP Act.
14 A 'Payment Claim' under cl 33 of the Contract is a 'Claim' as
defined in cl 1.1 of the Contract. That definition relevantly provides as
follows:11
Claim means any allegation, debt, cause of action, liability, claim,
proceeding, suit or demand of any nature howsoever arising and
whether present or future, fixed or unascertained, actual or contingent
whether at law, in equity, under statute or otherwise.
15 This definition would also extend a 'Claim' to cover a 'Payment
Claim' also made under the SOP Act, as it applies to claims 'at law, in
equity, under statute or otherwise'.
10 GAB 630 - 632.
11 GAB 116.
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[2026] WASCA 82
JUDGMENT OF THE COURT
Page 6
16 Given that a 'Payment Claim' under cl 33 is within the contractual
definition of 'Claim', it is also evidently within the definition of
'Notice':12
Notice includes any notice, Tax Invoice, consent, determination,
decision, acknowledgement, notification, rejection, Approval,
authorisation, Claim, proposal or any other communication made or
issued pursuant to a provision of this Contract. (emphasis added)
17 As a 'Notice' also covers a 'Claim', and as a 'Claim' would cover a
payment claim under the SOP Act, there is an argument that a 'payment
claim' for the purposes of the SOP Act is also a 'Notice'. The
alternative view is that the last words of the definition of 'Notice'
('made or issued pursuant to a provision of this Contract') qualify all
previous words, rather than just 'any other communication'.
18 Clause 47 of the Contract addresses the process of giving a
'Notice' under the Contract. Clause 47.2 states:13
A Notice given to a Party in accordance with clause 47 is treated as
having been duly given and received:
…
(c) if transmitted electronically, 1 hour after the sender sent the
Notice by email, unless the sender knows or ought reasonably to
suspect that the email was not delivered to the addressee's
domain.
19 However, this provision is qualified by the operation of cl 47.4,
which is in the following terms:14
Despite anything else in this clause 47, if communications are received
or taken to be received under clause 47.2 after 5.00 pm on a Business
Day or on a non-Business Day, they are taken to be received at 9.00am
on the next Business Day.
20 The term 'Business Day' is defined in cl 1.1 as follows:15
Business Day means any day other than a Saturday, Sunday or public
holiday at the place where the Site is located.
21 The effect of these provisions of the Contract is that the Payment
Claim sent by Martinus to CBH on Saturday 31 August 2024 was taken
12 GAB 120.
13 GAB 175.
14 GAB 175.
15 GAB 115.
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JUDGMENT OF THE COURT
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to have been received at 9.00 am on Monday 2 September 2024, at least
for the purposes of the Contract but arguably also for the purposes of
the SOP Act.
Relevant statutory provisions regarding time
22 Section 22 of the SOP Act provides:
(1) A person who is or claims to be entitled to a progress payment
may give a claim for the progress payment (a payment claim) to
the person who, under the relevant construction contract, is or
may be liable to make the progress payment.
(2) A payment claim is made for the purposes of this Act when the
claim is given under subsection (1).
23 This provision contemplates that a payment claim is given to the
person who, 'under the relevant construction contract', is or may be
liable to make the progress payment. That identifies to whom the
payment claim must be given, but the claim is still statutory and stands
outside the contractual regime. That is evident from s 17 of the SOP
Act, particularly s 17(4). The entitlement to receive a progress payment
arises under s 17(1), and is 'a separate and additional entitlement to any
entitlement to payment under a construction contract': s 17(4).
24 The effect of s 22(2) is a semantic one. It effectively equates the
time when a claim is 'made' with when the claim is 'given'. It does not
define when a claim is to be regarded as 'made' or 'given', beyond what
may be implied from the ordinary English meaning of these words.
25 Section 25(1) of the SOP Act makes plain that, absent some earlier
time being provided for by the construction contract, a principal has
15 business days to respond to a payment claim once it has been 'made',
but also does not define when such a claim is 'made':
The respondent may respond to a payment claim by giving a schedule
(a payment schedule) to the claimant before the earlier of the
following -
(a) the time required by the construction contract;
(b) 15 business days after the payment claim is made.
26 Section 113 of the SOP Act is concerned with service of
documents. Section 113(1) makes clear that the meaning of 'give'
includes serve, send or otherwise provide. However, there is a
distinction within s 113 between the manner of giving (or serving) a
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JUDGMENT OF THE COURT
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document, and the time when the document is regarded as given (or
served).
27 Section 113(2) and s 113(3) are concerned with the manner of
serving documents:
(2) Any document that by or under this Act is authorised or required
to be given by a party to a construction contract to another party
to the contract in relation to matters arising under the contract -
(a) must be given in the manner (if any) provided in the
contract if it is reasonably practicable to do so; or
(b) in any other case - must be given in a manner provided
by subsection (3).
(3) Any document that by or under this Act is authorised or required
to be given to a person may, subject to subsection (2), be given
to the person -
(a) by delivering the document to the person personally; or
(b) by leaving the document for the person at the person's
ordinary place of business; or
(c) by sending the document by post to the person's
ordinary place of business; or
(d) by email to an email address specified by the person for
giving documents of that kind to the person; or
(e) by any other method (including the use of an electronic
database, document system or any other means by
which a document can be accessed electronically)
authorised by the regulations for giving documents of
that kind to the person.
28 By contrast, s 113(4) is concerned with the timing of service of
documents:
(4) The regulations may make provision for or in relation to the
time at which a document that is given in a particular manner is
taken to have been given.
29 Notably, this provision does not prescribe a particular time or
point when a document is taken to have been given or served. Rather,
it leaves this for prescription by regulations.
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JUDGMENT OF THE COURT
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30 The relevant regulation is reg 23 of the Building and Construction
Industry (Security of Payment) Regulations 2022 (WA) (SOP
Regulations). Regulation 23 materially provides:
The time when a document that is authorised or required by or under
the Act to be given to a person is taken to have been given is as
follows -
…
(d) in the case of a document sent to a person by email or any other
form of electronic communication - when the electronic
communication is taken to be received by the person in
accordance with the Electronic Transactions Act 2011
section 14[.]
31 Once again, this regulation does not prescribe any particular time
or point when a document is taken to have been given or served.
Instead, it refers to when the communication is taken to have been
received 'in accordance with' s 14 of the Electronic Transactions Act
2011 (WA). As will be seen, this gives rise to a question about what it
means for a communication to have been received 'in accordance with'
s 14.
32 Section 14(1) of the Electronic Transactions Act states as follows:
(1) For the purposes of a law of this jurisdiction, unless otherwise
agreed between the originator and the addressee of an electronic
communication -
(a) the time of receipt of the electronic communication is
the time when the electronic communication becomes
capable of being retrieved by the addressee at an
electronic address designated by the addressee; or
(b) the time of receipt of the electronic communication at
another electronic address of the addressee is the time
when both -
(i) the electronic communication has become
capable of being retrieved by the addressee at
that address; and
(ii) the addressee has become aware that the
electronic communication has been sent to that
address.
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JUDGMENT OF THE COURT
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The competing positions
33 CBH's position may be summarised in the following stages.
34 First, CBH says that the time when a payment claim is made or
given is not prescribed by the SOP Act, but is left to be prescribed by
the SOP Regulations. Regulation 23(d) makes plain that the time when
a payment claim is made or given is, for the purposes of an electronic
communication, prescribed by s 14 of the Electronic Transactions Act.
35 Secondly, if regard is had to s 14(1), it is plain that a time for
receipt of an electronic communication may be agreed between the
parties. If it is not, then the statutory rules about time of receipt
prescribed by s 14(1)(a) or (b) apply.
36 Thirdly, CBH claims that the time for receipt of a payment claim
was agreed under cl 47.4 of the Contract.
37 Consequently, CBH says that the period of 15 business days is
calculated as the period after Monday 2 September 2024, ending on
Tuesday 24 September 2024.
38 Martinus challenges this analysis at various points.
39 First, Martinus argues that the power to make regulations
prescribing the time for receipt of an electronic communication cannot,
in substance, permit the making of regulations which extend the period
for providing a responsive payment schedule beyond the period of
15 business days after the time when the payment claim was capable of
being retrieved and read by CBH. Martinus illustrates this by
contending that it should not be permissible to make regulations which
permit the parties to make an agreement that the receipt of an electronic
communication would commence 100 days after it was first capable of
being retrieved electronically and read by CBH.
40 In respect of this issue, senior counsel for Martinus invoked a
particular consideration to support the proposition that the regulation
making power should not be construed to permit what might be, in
substance, an extension of the 15 business day period. This is the
consideration that the SOP Act needs to be construed in a way which
delivers certainty, so that there is a 'bright line' between situations
where the service of a responsive payment schedule is within time or
out of time. Senior counsel for Martinus pointed out that if there was
an ability to provide for an agreed time of receipt of a payment claim,
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JUDGMENT OF THE COURT
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this would make the question of whether there was any substantive
extension of a 15 business day period a matter of 'fact and degree'.
Martinus rhetorically posed a '5-day case' to ask whether that would be
within or outside power.
41 Secondly, if the limit upon the power to make regulations
proposed by Martinus is accepted, Martinus then argues that reg 23(d)
should be construed in conformity with that limitation. On that basis,
reg 23(d) would be read as only applying the statutory rules in
s 14(1)(a) or (b) of the Electronic Transactions Act to the receipt of
electronic communications, and would not be construed as permitting
an agreed time of receipt for electronic communications. Alternatively,
it would not be read as permitting an agreed time of receipt for
electronic communications which extended beyond the limitation upon
the power to make regulations proposed by Martinus. On this basis,
cl 47.4 of the Contract could not be effective to extend the time for
providing the responsive payment schedule to 24 September 2024.
42 Thirdly, Martinus says that a payment claim for the purposes of
the SOP Act is entirely distinct from the contractual regime. Martinus
points out that there is a separate entitlement to make a statutory
payment claim, by reason of s 17 of the SOP Act. Martinus contends
that cl 47.2 of the Contract was only an agreement for the purposes of
making a contractual Payment Claim, and not a statutory payment
claim, even if the one document might be used for the purposes of both
a statutory and contractual claim. Consequently, on this view, there
was no agreement for the purposes of the operation of cl 47.4 in respect
of a payment claim made under the SOP Act. Clause 47.4 only
concerns a Payment Claim made under the Contract.
Identification of disputed issues
43 These divergent positions potentially create four issues which
occupied much of the oral argument at the hearing of the appeal.
44 First, is the ordinary and natural meaning of reg 23(d) that it only
applies the statutory rules contained in s 14(1)(a) and (b) (without
reference to the words in the chapeau) in respect of the receipt of
electronic communications? This might be described as the 'textual
issue'.
45 If this textual issue is resolved by holding that the text of reg 23(d)
leaves open the possibility that, as a matter of constructional choice, the
operation of reg 23(d) is capable of applying an agreed rule about
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receipt of email communications, by reason of the words in the chapeau
of s 14(1), then it becomes necessary to address the following further
matters.
46 Secondly, what is the extent of the regulation making power under
s 113(4) of the SOP Act, and does it authorise the making of a
regulation which allows parties to agree that an email which is received
on a non-business day shall be deemed to be received at 9.00 am on the
next business day?
47 Thirdly, if the answer to the second question is 'no', should
reg 23(d) be construed as only applying the statutory rules contained in
s 14(1)(a) and (b) (without reference to the words in the chapeau) in
respect of the receipt of electronic communications, so as to construe it
consistently with a limited regulation making power where there is a
constructional choice?
48 Fourthly, is cl 47.4 an agreement between CBH and Martinus in
respect of a payment claim under the SOP Act (as opposed to a
Payment Claim under the Contract) such that an email communication
received on a non-business day shall be deemed to be received at
9.00 am on the next business day?
Approach of the trial judge
49 The trial judge commenced with the first critical issue.
His Honour asked whether the words of reg 23(d) should be construed
to incorporate an agreement about the receipt of an email
communication between the parties, which would operate as an
exception to the statutory rules about the time of receipt set out in
s 14(1)(a) and (b).
50 In other words, the trial judge started with what we have described
as the 'textual issue'. On this issue, the trial judge considered that the
words of reg 23(d) were not intended to incorporate any agreed rule
about the time of receipt of an electronic communication. His Honour
said:16
The evident intent of the regulation is to permit the determination of
when an electronic communication is taken to be received by reference
to s 14.
16 Martinus Rail Pty Ltd v Co-Operative Bulk Handling Ltd [2025] WASC 373 (Reasons) [160] - [164].
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The words 'unless otherwise agreed' that appear in the chapeau to
s 14(1) do not assist to determine when an electronic communication is
taken to be received. This is because the words do not give any
statutory force to an agreement and instead permit the parties to agree
that s 14 does not apply.
Given this, if reg 23(d) applied the words 'unless otherwise agreed' the
effect of the regulation would be that where the parties have otherwise
agreed, the regulation would not permit the determination of when an
electronic communication is taken to be received. This would defeat
the intention of the regulation and cannot have been what was intended.
I consider that reg 23(d) does not apply the chapeau of s 14(1) to the
Act. This is because reg 23(d) applies when an email or electronic
communication is 'taken to be given' by s 14. As the chapeau of s 14(1)
does not provide for when an email or electronic communication is
'taken to be given', the chapeau has no relevant application.
Such a construction is consistent with the policy of the Act.
51 The trial judge then considered that this approach was consistent
with the policy of the SOP Act. That was because his Honour
considered that the policy evident from s 25(1), and the general object
of establishing an expedited procedure for the payment of progress
claims (set out in s 3(2)), was to ensure expedition by strictly limiting
the time for a response to a payment claim to the time limits set out in
the SOP Act. The trial judge observed that his construction of
reg 23(d) and s 14 of the Electronic Transactions Act, left the time
limits in s 25(1) of the SOP Act undisturbed.17
52 His Honour also said that the construction advanced by CBH had
the potential to undermine the expedited procedure established by the
SOP Act because 'it would permit parties to agree to defer the start of
the relevant time period and thereby extend that period (potentially
indefinitely)'.18
53 Consequently, the trial judge considered that reg 23(d) and
s 14(1)(a) of the Electronic Transactions Act had the effect that the
payment claim made by Martinus was made on Saturday 31 August
2024.19
54 The trial judge then added two more points to buttress his
decision, although they were expressed briefly.
17 Reasons [168].
18 Reasons [169].
19 Reasons [171].
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JUDGMENT OF THE COURT
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55 The first point was that even if the parties had agreed that a
different date would be effective, that agreement would not be given
force by the SOP Act.20
56 The second point was that even if somehow the parties had
reached a binding agreement for the purposes of the SOP Act, but they
had agreed something inconsistent with the SOP Act, that agreement
would be rendered void by s 111 of the SOP Act. Section 111
provides:
(1) This Act has effect despite any provision in any contract,
agreement or other arrangement.
(2) A provision of any contract, agreement or other arrangement is
void to the extent that it -
(a) is inconsistent with this Act; or
(b) purports to exclude, modify or restrict the operation of
this Act or has the effect of excluding, modifying or
restricting the operation of this Act; or
(c) requires a party to a construction contract to reimburse
the other party to the contract for any costs or expenses
incurred in connection with the taking of action under
this Act, except as authorised by this Act; or
(d) may be reasonably construed as an attempt to deter a
person from taking action under this Act.
Appeal and Contention grounds
57 CBH has appealed on the following grounds:
1. The trial judge erred in law in finding that, properly construed,
reg 23(d) of the Building and Construction Industry (Security of
Payment) Regulations 2022 (WA) (SOPR), s 113(4) of the
Building and Construction Industry (Security of Payment) Act
2021 (WA) (SOPA), and s 14(1) of the Electronic Transactions
Act 2011 (WA) (ETA) … :
(a) had the effect that the 15-business-day period for the
purposes of s 25(1) of the SOPA commenced on the
date the August Payment Claim Email and attachment
(as defined in J [12]) was capable of being retrieved
(Saturday 31 August 2024); and
20 Reasons [171].
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(b) the SOPA does not permit parties to a contract to agree
on when a payment claim is given or taken to be given
under the SOPA.
2. The trial judge ought instead to have held that, properly
construed, reg 23(d) of the SOPR, s 113(4) of the SOPA and
s 14 of the ETA, read together with the parties' Contract, had the
effect that the August Payment Claim Email was received at
9.00am on Monday 2 September 2024.
58 These grounds raise the issue of the proper construction of
s 113(4) of the SOP Act, reg 23(d) of the SOP Regulations and s 14(1)
of the Electronic Transactions Act, considered together. This depends
upon the outcome of the first, second and third issues which we have
identified. However, the grounds of appeal are not expressed by
reference to the substance of these issues, as it is only error in the final
construction which needs to be demonstrated.
59 Martinus has filed a notice of contention. The ground of
contention is:
If the primary court's decision is not to be upheld on the grounds relied
upon by the primary judge (or upon one or more of those grounds), it
should nevertheless be upheld on the ground that it has not been
established by the Appellant that the parties relevantly reached any
agreement as to the time at which a payment claim for the purposes of
the SOP Act will be taken to have been received.
60 The contention ground corresponds to the fourth issue which we
have identified above.
The textual issue
61 As we have explained, the critical issue of construction reduces to
the meaning of 'in accordance with' in reg 23(d) of the SOP
Regulations. Where there is an agreement about the time when a
payment claim should be regarded as having been received, does giving
effect to this agreement mean that the agreed time of receipt is 'in
accordance with' s 14(1) of the Electronic Transactions Act for the
purposes of reg 23(d)?
62 Before turning to the text of reg 23(d), it is helpful to refer to the
context provided by the other provisions in reg 23. Regulations 23(a),
23(b), 23(c) and 23(e) all prescribe the time of receipt of a document as
the point when a document has been placed into the control of a
recipient, and the recipient should be aware that the document is
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capable of being accessed. This is not necessarily at the point when the
document is actually accessed by a recipient.
63 Regulation 23(a) prescribes that a document which is personally
delivered is received:
(a) at the time when it is accepted by a person; or
(b) if the person refuses to accept the document, when the
document is put down in the person's presence and the person is
informed of the nature of the document.
64 The second limb of this regulation makes plain that once the
document is within the control of a person to whom it is delivered, and
that person knows of the document, it is taken to have been received by
the person, whether or not the person physically accepts the document.
65 Regulation 23(b) applies where a document is left for a recipient at
the person's ordinary place of business. The time when it is received is
when the document is left at the premises concerned with a person who
appears to work there. The significance of leaving it with a person who
apparently works at the premises is that this person will be regarded as
the agent of the recipient, with a duty to inform the recipient about the
document. In other words, the recipient should become informed of the
document which has been left at the premises.
66 Regulation 23(c) applies to documents which are physically posted
to a person's ordinary place of business. The time of receipt is either
when:
(a) the letter has presumptively been delivered in the ordinary
course of post to that ordinary place of business; or
(b) a different time of actual delivery is established.
67 In both cases, the time of receipt is when the letter is received, or
can be presumed to have been received, at a recipient's ordinary place
of business, and therefore the recipient should have become aware of
the letter.
68 Regulation 23(e) operates where a document is uploaded to an
electronic lock-box. The document is received by a recipient able to
download it from the lock-box at the time when the document is
uploaded, not at the time when it is actually downloaded. (It should be
appreciated that this form of service is, by reg 22(2), only applicable
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where a document is authorised or required to be given to an 'authorised
nominating authority'. The limited application of this form of service
does not impact on the point that we derive from the context provided
by reg 23(e).)
69 This context in the other sub-paragraphs of reg 23 strongly
suggests that the aim or object of reg 23 is to prescribe a time of receipt
for a document as the point when the document was under the control
of the recipient, and the recipient should have been aware of this.
70 Regulation 23(d) prescribes the time of receipt by a person of an
email or other electronic communication as the point 'when the
electronic communication is taken to be received by the person in
accordance with the Electronic Transactions Act 2011 section 14'.
71 The Electronic Transactions Act is not limited in its sphere of
operation to cases concerned with the operation of the SOP Act or the
SOP Regulations. Consequently, it cannot be said that there is anything
in s 14 of the Electronic Transactions Act which has the aim or object
of reg 23 just identified. However, the statutory rules (in s 14(1)(a) and
s 14(1)(b)) which prescribe a time of receipt for an electronic
communication are consistent with providing that such a
communication is taken to be received when the communication is
under the control of the recipient and the recipient should have been
aware of this.
72 The statutory rule in s 14(1)(a) applies when the electronic
communication becomes capable of being retrieved by an addressee at
a designated electronic address. The designation of an electronic
address for the purposes of receiving communications means that an
addressee has a responsibility for monitoring the electronic address, and
should be aware when a communication is received at that address.
73 The statutory rule in s 14(1)(b) applies when the electronic
communication is received at another (non-designated) electronic
address. In that case, the time of receipt is when the electronic
communication is both capable of being received and the addressee has
become aware that the electronic communication has been sent to that
address. That is, receipt occurs once the addressee can retrieve the
communication and knows that the communication has been received.
74 It follows that, if the operation of reg 23(d) is to apply the
statutory rules contained in s 14(1)(a) and s 14(1)(b) to prescribing the
time of receipt of an electronic communication, this would be precisely
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consistent with the object of the remainder of the provisions in reg 23.
On the other hand, if reg 23(d) allows an agreement between the
originator and addressee of an electronic communication to have effect
as defining the time for receipt of an electronic communication, this
agreement would not necessarily conform to the objects of reg 23.
Further, there is nothing in reg 23(d) which purports to limit the
application of s 14 of the Electronic Transactions Act only to
agreements which are consistent with the aim of reg 23.
75 This context strongly suggests that reg 23(d) was only intended to
apply the statutory rules about the time of receipt in s 14(1)(a) and
14(1)(b), but was not intended to permit the operation of an agreement
about the time of receipt.
76 Turning then to the text of reg 23(d), the critical phrase which
applies the rules in s 14 of the Electronic Transactions Act is that the
time of receipt for an electronic communication is taken to be 'in
accordance with' s 14 of the Electronic Transactions Act.
77 The meaning of the phrase 'in accordance with' is protean. It may
vary according to context. In Conservation Council of WA Inc v
Dawson, Pritchard JA said:21
The phrase 'in accordance with' has a range of meanings. The verb
'accord' means to be in harmony, or in correspondence, or to be
consistent with another thing. Consequently, the phrase 'in accordance
with' can mean 'in agreement with', 'in harmony with', 'consistently
with' or 'in conformity to'. In this sense, use of the phrase 'in
accordance with' will convey a requirement, to a greater or lesser
extent, that one thing be consistent with, or compatible with, another
thing. At one end of this spectrum of meaning, where the phrase 'in
accordance with' means 'in harmony with,' or 'consistently with', use of
the phrase may convey a requirement for broad compatibility. At the
other end of this spectrum of meaning, use of the phrase may connote a
requirement for complete identity between one thing and another. The
phrase 'in accordance with', especially when used in legislative
provisions concerned with the exercise of authority or power, may also
be used synonymously with 'under', 'by', 'pursuant to' or 'by virtue of'.
Use in the latter sense not only identifies the source of the authority or
power but necessarily imports a requirement that the power be
exercised consistently or compatibly with any limits on the exercise of
the power which may be contained in the grant of power itself.
(footnotes omitted)
21 Conservation Council of WA Inc v Dawson [2019] WASCA 102; (2019) 240 LGERA 387 [154].
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78 In the present case, there is a particular nuance about the way in
which the phrase may operate. The chapeau of s 14(1) obviously
contemplates that there may be an agreement about the time of receipt
of an electronic communication reached between the originator and
addressee of the communication. However, s 14(1) treats this as an
exception to the operation of the statutory rules prescribed in s 14(1)(a)
and s 14(1)(b). In these circumstances, there is a distinction between
the legislative treatment of a consensual agreement and a prescriptive
statutory rule. While the operation of a consensual agreement may be
contemplated by the chapeau of s 14, it is the statutory rules which are
legally effective by reason of s 14.
79 This gives some significance to the phrase 'in accordance with' in
reg 23(d). The application of a prescribed statutory rule is obviously
done 'in accordance with' the legislation which prescribes the rule.
However, that is not at all obvious with the application of an agreed
rule which is contemplated by legislation to operate as an exception to
the statutory rules. The legal effect of the agreed rule derives from the
agreement, not from legislation. This is notwithstanding that the
legislation may create an exception which allows the agreed rule to
operate.
80 Given the context of the other provisions of reg 23, and the
consideration that the statutory rules prescribed by s 14(1)(a) and
s 14(1)(b) are precisely consistent with the object of the other
provisions of reg 23, we consider that the phrase 'in accordance with' in
reg 23(d) means 'in accordance with the legal effect' of s 14. This
means that reg 23(d) applies the statutory rules contained in s 14(1)(a)
and s 14(1)(b) of the Electronic Transactions Act, rather than applying
any agreed rule which has legal effect by reason of contract rather than
s 14.
Further observations
81 The conclusion which we have reached is a product of considering
the text of reg 23(d) and s 14 of the Electronic Transactions Act.
However, it is possible to go further. It is a conclusion which gives
effect to a policy aim of the SOP Act to ensure that there is an
expedited procedure for making claims for progress payments, for
responding to those claims and for the adjudication of disputed claims:
s 3(2)(b) of the SOP Act. It also ensures that there is certainty about
the operation of the SOP Act and SOP Regulations.
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82 Having acknowledged this, however, we do not think that great
weight can be placed upon these generalised policy considerations for
the purposes of the present case. We are not convinced that there
would be any legal difficulty with a provision of the SOP Regulations
which expressly provided that the electronic communication of a
payment claim received on a non-business day should be taken to be
received at the commencement of the next business day. That seems to
us to be another legitimate legislative choice as to when a payment
claim is 'made' or 'given'. It simply places a different emphasis upon
when it is presumed that a payment claim will be actually opened and
read. However, this is not the approach which has been adopted in
reg 23. As we have indicated, the aim of reg 23 is to prescribe a time of
receipt for a document as the point when the document was under the
control of the recipient, and the recipient should have been aware of
this.
83 Equally, we have not been persuaded by the submission advanced
by CBH that the SOP Act has a number of provisions in it which
demonstrate that it was intended to respect the contractual bargain
made by the parties to a construction contract. Ultimately, that
submission does not overcome the particular intent about when receipt
of a document should be taken to have occurred, which is evident from
the provisions of reg 23.
84 It is unnecessary in the circumstances to resolve questions about
the extent of the regulation-making power under s 113(4), although as
we have just observed in paragraph [82] above, we have some doubts
about the submissions made by senior counsel for Martinus on this
issue. It is also unnecessary to resolve the ground of contention that
cl 47.4 only represented an agreement about the time of receipt for a
contractual Payment Claim, and not for a statutory payment claim.
Even if there was an agreement about the time of receipt for a statutory
payment claim, this would be irrelevant for the purposes of the
operation of reg 23(d), properly construed in the manner we have
concluded.
85 Lastly, we have not found any particular assistance from
considering the legislative regimes for security of payments from other
jurisdictions. They have similar aims, but the detail of their provisions
differs in material respects.
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Conclusion
86 For these reasons, which are largely similar to those given by the
trial judge, we would dismiss the appeal.
I certify that the preceding paragraph(s) comprise the reasons for decision of
the Supreme Court of Western Australia.
DC
Associate to the Honourable President Thomson
19 JUNE 2026
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