A & L Builders Pty Ltd v Porter [2026] QCAT 118
QUEENSLAND CIVIL AND
ADMINISTRATIVE TRIBUNAL
CITATION: A & L Builders Pty Ltd v Porter [2026] QCAT 118
PARTIES: A & L BUILDERS PTY LTD
(applicant)
v
IAN PORTER
(respondent)
APPLICATION NO/S: BDL200-23
MATTER TYPE: Building matters
DELIVERED ON: 16 March 2026
HEARING DATE: 8 August 2025; 11 August 2025; 11 September 2025
HEARD AT: Brisbane
DECISION OF: Member Howe
ORDERS: Ian Porter pay A & L Builders Pty Ltd the sum of
$77,792.05 within 7 days of the date hereof.
Ian Porter pay interest of $50,628.76 to date of
judgment and interest thereafter at the rate of 10 per
cent per annum on any monies outstanding.
Any application for costs by a party shall be made
with supporting submissions and be filed in the
Tribunal with a copy to the other party by 4pm on 6
April 2026.
The responding party may file submissions in
response in the Tribunal with a copy to the applying
party by 4pm on 27 April 2026.
Submissions must address both the assessment and
fixing of costs and with respect to the latter, with
supporting evidence.
Any decision about costs shall be determined on the
papers.
CATCHWORDS: CONTRACTS – BUILDING, ENGINEERING AND
RELATED CONTRACTS – PERFORMANCE OF WORK
– GENERAL – where water entry into a house was detected
during construction after waterproofing work had been done
– where the waterproofing work was repeated – where the
owner entered early without permission – where the owner
refused to pay outstanding money due the builder until the
water entry problem was fixed – where the builder returned
for a number of years trying to remedy the problem – where
-- 1 of 13 --
2
a hydrologist suggested there was water flowing or pooling
under the building and wicking up into the interior – where
work suggested by the hydrologist outside the scope of work
of the contract was performed – where the water problem
was resolved – where the water entry was consequent on a
latent condition unknown prior or during construction –
where the builder was not responsible for defective work
CONTRACTS – BUILDING, ENGINEERING AND
RELATED CONTRACTS – THE CONTRACT –
CONSTRUCTION OF PARTICULAR CONTRACTS
AND IMPLIED CONDITIONS – RIGHT TO
POSSESSION – where the owner’s entry into occupation
without permission from the builder meant practical
completion was deemed to have occurred – where the
builder had performed the final work under the contract
shortly thereafter and issued a final claim – where deemed
practical completion meant notices required under the
general conditions were not necessary and there were
deemed to be no defects or omissions in the work – where
the builder was entitled to substantial interest owing for late
payment of the final claim
Queensland Building and Construction Commission Act
1991 (Qld) s 108D, Schedule 1B s 34(1)
Eko Investments Pty Limited v Austruc Constructions
Limited & Ors; The Owners Strata Plan No 64970 v
Austruc Constructions Limited & Ors [2009] NSWSC 208
Electricity Generation Corporation v Woodside Energy Ltd
[2014] HCA 7
Nissen and Anor v Jarotech Pty Ltd [2012] QCAT 307
Pullen & Anor v Gutteridge Haskins and Davey Pty Ltd
[1993] 1 VR 27
Surfstone Pty Ltd & Anor v Morgan Consulting Engineers
Pty Ltd [2016] QCA 213
APPEARANCES &
REPRESENTATION:
Applicant: P Mason instructed by Radich Lawyers
Respondent: Self-represented
REASONS FOR DECISION
[1] The applicant contractor (‘the builder’) and respondent owner (‘Mr Porter’) entered
into a Master Builders Residential Building Contract Level 2 on 7 September 2018
for the construction of a three-level detached dwelling at the Gold Coast for a price of
$654,000 (incl GST).
[2] In course of the build, water seepage into the lower floor area was observed and the
builder responded by re-applying waterproofing coatings and sealants.
-- 2 of 13 --
3
[3] The builder claimed practical completion was achieved on 30 August 2019 and issued
a final claim for payment. The owner had moved into the building prior to that on 18
August 2019.
[4] Mr Porter did not pay the final claim but asked for a ‘reconciliation’ of the amount
due.
[5] On 13 December 2019 there was major flooding at the Gold Coast and significant
water entry occurred at the subject premises. Mr Porter claimed the water entry
problems were caused by the builder’s failure to comply with plumbing standards and
statutory requirements and poor waterproofing work.
[6] Mr Porter refusing to pay the builder’s final claim, the builder commenced
proceedings against Mr Porter in the Magistrates Court on 27 August 2020 claiming
payment of $83,542.05 representing the amount due on practical completion. The
proceedings were dismissed in part because of the failure to comply with the
requirements for attempted dispute resolution before commencement of litigation
required by s 77(2) of the Queensland Building and Construction Commission Act
1991 (Qld) (‘the Act’).
[7] Subsequently the builder commenced the within proceedings in the Tribunal again
claiming payment of the practical completion stage of work in the sum of $83,542.05
plus interest.
[8] Mr Porter filed a counter application claiming payment of $191,000 as the cost of
rectification of defects principally associated with the water entry problem.
The contract
[9] Mr Porter maintained the standard form general conditions of the Master Builders
Residential Building Contract Level 2 signed by the parties did not form part of the
contract between them. Mr Porter claimed he was never given a copy of the general
conditions and therefore he maintained he was not bound by them because he had not
signed a copy of the general conditions.
[10] The schedule to the contract makes extensive reference to the clauses of the general
conditions of the Master Builders Residential Building Level 2 contract. There is little
sense to be made of many of the schedule items without the benefit of reference to the
general conditions.
[11] The general conditions were clearly intended to be incorporated into the contract. At
page 8 of the schedule, beneath the signatures of Mr Haley, an employee representing
the builder, and Mr Porter, there is the following notice: WARNING - Do Not Sign If
the owner has not been provided with the general conditions.
[12] At hearing Mr Haley said when they printed out the Master Builders contract the
general conditions always printed out “with it” but when completing the contract the
general conditions were not always signed.
[13] It is not in dispute that a Scope of Works document formed part of the contract. Mr
Porter was responsible for various aspects of the job as noted in that document. At
-- 3 of 13 --
4
page 4 of the Scope of Works it is clearly stated “THIS SCOPE OF WORKS overrides
the Building Contract Conditions.”1
[14] As stated in Surfstone Pty Ltd & Anor v Morgan Consulting Engineers Pty Ltd [2016]
QCA 213:
[39] The central question on this issue is one of construction of the proposal
letter. Guidance is given by the decision in Toll (FGCT) Pty Ltd v
Alphapharm Pty Ltd:[52]
“This Court, in Pacific Carriers Ltd v BNP Paribas, has recently
reaffirmed the principle of objectivity by which the rights and
liabilities of the parties to a contract are determined. It is not the
subjective beliefs or understandings of the parties about their rights
and liabilities that govern their contractual relations. What matters
is what each party by words and conduct would have led a
reasonable person in the position of the other party to believe.”
[40] In examining that issue an objective approach is taken, rather than
looking at any subjective opinion or expression by the parties. Further,
the Court should adopt a commercial approach in resolving any
uncertainties in the language, and give a meaning to words where that is
possible, without being unduly pedantic or narrow.[53]
[15] This was a commercial arrangement between the parties and should be approached as
such. The High Court said in Electricity Generation Corporation v Woodside Energy
Ltd [2014] HCA 7:
… this Court has reaffirmed the objective approach to be adopted in
determining the rights and liabilities of parties to a contract. The meaning of
the terms of a commercial contract is to be determined by what a reasonable
businessperson would have understood those terms to mean.2
[16] Mr Porter described himself as a business owner in one statement of evidence and the
builder necessarily entered into the contract as part of its general business activity. On
objective interpretation, the general conditions were incorporated into the contract
between the parties.
Water entry
[17] Mr Porter maintains practical completion was never achieved because the building
was left with a continuing water entry problem.
[18] Construction started on about 11 September 2018 and according to Mr Haley,
practical completion was achieved on 30 August 2019.
[19] As the build progressed, water seepage into the building became evident.
[20] Mr Porter put into evidence numerous emails he sent to Mr Haley during the build.3
From an email of 3 February 2019 Mr Porter appears to have first noticed a water
entry issue at about that time writing to Mr Haley “Pics of ground floor water after
1 What was intended by that statement is not entirely clear, but one notes the order of precedence of
documents listed in clause 3.3 of the general conditions normally gives precedence to the general
conditions over specifications, and it seems the scope of works document intended to reverse that
order.
2 [35].
3 Ex 25.
-- 4 of 13 --
5
last nights rain.” He attached four photographs captioned respectively Ground floor
bathroom toilet wall close-up; Under stairs; Ground floor bathroom toilet wall; and
ground floor bathroom kitchen.
[21] Then on 9 February 2019 he wrote “Pics from this morning showing a lot of water
seepage into ground floor, from under internal ground to level 1 staircase.” He
attached three photographs.
[22] On 3 March 2019 he wrote “Attached pic from the downstairs kitchen area waste,
which shows water still seeping up. And this weekend the under front stairs area also
filled up and overflowed onto carport area.”
[23] On 17 March 2018 Mr Porter wrote an email saying he was very concerned about
more rain and water getting into the ground floor.
[24] The next email about water entry was not until 16 June 2019 when Mr Porter reminds
Mr Haley about waterproofing under the front stairs and notes “water seeping in
garage block wall”.
[25] In an email of 19 June 2019 Mr Porter identified the water seepage as a major concern
“…and the simple silicon job is just not working”.
[26] There are no more emails about water or water seepage before Mr Porter asked Mr
Haley on Wednesday 21 August 2019 to prepare a final account by the end of that
week.
[27] Mr Haley forwarded an invoice for final payment on 30 August 2019, the builder’s
claimed date of practical completion, but Mr Porter did not pay. Mr Porter had
occupied the building before that.
[28] There are no further comments about water entry in emails between the parties until
13 December 2019 when there was a major weather event at the Gold Coast with the
bottom floor of the dwelling being inundated with above ground flooding water. That
was the subject of an email from Mr Porter to Mr Haley dated 16 December 2019.
[29] On 15 January 2020 Mr Porter wrote to Mr Haley saying “When all building works
have been completed to comply with Qld Regs. With absolutely no chance of a repeat
of the 13th Dec ground floor flooding funds will be available to settle the reconciled
account balance.”
[30] An email from Mr Porter to Mr Haley on 23 January 2019 suggests both parties
believed the problem concerned the waterproofing products used by the builder or
how it was being applied or both and that water was entering by seeping through the
Eastern side block wall.
[31] In an email to Mr Haley on 30 March 2020 Mr Porter discussed the waterproofing.
He referred to further waterproofing work performed by the builder on 23 March
2020. Mr Porter said he had consulted with his own waterproofing expert (the third of
such). He had concluded that the issue was the builder’s failure to properly apply
waterproofing and the correct waterproofing material during the build.
[32] Additionally, Mr Porter linked the problem to missing “ag” pipe4 or other drainage
outside the Eastern wall, failing to take the water away.
4 Agricultural pipe used in sub-surface drainage.
-- 5 of 13 --
6
[33] The contract scope of works document provided:
Placement of 100mm Aggi pipe around ground floor East, West and North slab
perimeter; including sock & gravel. With run off according to GCCC
requirements with North and West wall Aggi run off to the Western Side.
[34] The parties agree the problem of water penetration was finally remedied in about
November or December 2024.
[35] According to Mr Porter at hearing, the problem of water entry has always been
attributable to the builder’s failure to install the agricultural pipe correctly in
accordance with the requirements of the contract.
[36] That was not the position he adopted until well after the work had been completed
however. Through the construction he blamed the waterproofing work as inadequate
and the waterproofing products being substandard.
[37] Mr Haley giving evidence at hearing said at about the time of the end of the building
work he considered the problem was probably a latent condition caused by water lying
or flowing under the building. He said he continued to return trying to stop the water
penetration through further waterproofing efforts on the walls, both interior and
exterior.
[38] In 2024 Mr Porter engaged another builder to fix the problem. That other builder in
turn engaged Mr Haley to do the work.
[39] Mr Haley engaged a hydrologist who attended the site and suggested the problem was
caused by water wicking up from under the foundations through the concrete and
drawing up into the walls. The hydrologist suggested digging new agricultural pipe
(‘ag pipe’) down to a depth of at least 400 mm along the Eastern side of the building,
below the foundations then cutting a trench across the front driveway (Southern side)
and connecting the ag pipe to a pit on the Western side of the house. From there to the
road.
[40] That was done and the result has been no water entry into the dwelling. The new work
has proven itself by withstanding the significant deluge of rain caused by Cyclone
Alfred which struck on 6 March 2025.
[41] Mr Porter claims that the builder was required to do that under the scope of work. But
the scope of work simply required the builder to lay agricultural pipe around the
ground floor slab perimeter.
[42] Mr Haley pointed out that the drainage area on the Eastern side was small, and though
the scope of works specified use of 100 mm ag pipe the builder used 50 mm instead
which was adequate.
[43] Mr Reeves gave evidence. He was a plumber who did work on site. He also described
the drainage area on the Eastern side of the building as small, perhaps no more than
14 square metres. He also thought the drainage installed there, which included the 50
mm ag pipe, should have been sufficient to take away any rainfall water.
[44] Mr Porter claimed the 50 mm agricultural pipe laid around the slab was too small. It
should have been 100 mm as specified and with a sock covering. Mr Haley said a sock
was only used if the ag pipe was laid in sand but if laid in metal or stone as it was
here, a sock was not necessary.
-- 6 of 13 --
7
[45] Mr Porter stated at hearing:
MR PORTER: I’m now going to address the issue that Alan, A&L, failed to
build in accordance with the scope of works that created other problems that
compounded. We never weren’t into practical completion because he wouldn’t
fix it. I have to address those issues. There is one issue that’s created all these
photographs – that’s the ag pipe. I’m addressing the issue of ag pipe not
installed as per scope of works – meaning, wasn’t a hundred ml, wasn’t covered
in a sock and wasn’t put lower than the footing. Those three things combined
created a nightmare down that eastern side, which thankfully has now been
rectified. If it was done four years and 10 months earlier, we wouldn’t be here
today.5
[46] Mr Haley challenged that statement. He said the scope of work simply required ag
pipe laid around the ground floor slab perimeter. There was no depth specified.
[47] Mr Haley said it was not normal to lay ag pipe as was done here but the builder had
laid the pipe exactly where Mr Porter’s engineer had asked him to place it, that is,
down the outside of the block wall. It was only when Mr Haley engaged the hydraulic
engineer in November 2024 that the idea of laying ag pipe under the level of the
footings was raised. It had never been mentioned before that.
[48] The following exchange occurred between Mr Haley in cross-examination by Mr
Porter which sets out the case for Mr Haley:
MR PORTER: While I’m composing myself, Mr Haley, when we moved into
the property, in August ‘18, are you saying that the property had no defects, no
problems?‑‑‑Yes. That’s why you moved in. We’d been over everything and
we did the final clean – ah – and then I left the property. So – um – other than
we – we did have that problem with the – um – the water which we were trying
to address, which I was telling you was latent conditions, and I was not going –
I wasn’t prepared to pay for it, I’d paid for too much other stuff, and – ah – you
wouldn’t agree to help me with that, so we left the property.
You just said latent conditions?‑‑‑Yes.
When were you aware of latent conditions?‑‑‑Well, it was – it was after that job
was finished. I think you and I discussed it.
Are you – I have correspondence from you which says that you were aware of
latent conditions when you poured the first floor?‑‑‑Mmm.
Which would be four to six weeks after we first did the dig. I have the
correspondence from you?‑‑‑Not – it wouldn’t have been in relation to what we
found out in the end because we eventually found out that water was flowing
underneath your house constantly. I didn’t really find that out until the job was
just about complete, that the water could not get out. Yeah. Your house – your
section was like a bathtub. The road was – the road was above the – um – the
height of egress for the water and so the water could not get out.
So the works you did in November and December ‘24, how did that
miraculously fix all the water under the slab?‑‑‑Because – because that – that’s
what I was – when – when – when we had the problem, I got hold of a hydraulic
engineer, I paid a hydraulic engineer to come and check the job out for me.
Okay. He came up with a suggestion, as I thought it was, we had to get rid of
5 T3-44 L24.
-- 7 of 13 --
8
the water lower down, that was the below the foundations. So the – the standard
water that you get rid of on the job is up on the top of the – you know, the – um
– right up on top of – ah – ground level, but the problem with your place is that
the water – ah – the whole place has got an RL that brings the water right up to
the top of the foundations. The water used to constantly sit at the top of the
foundations in the end, and so that’s what we needed to get rid of. So we had
to drop an ag pipe down 400 down lower, and put metal in, which we did
eventually, after you paid someone else to do it, and that completely fixed the
whole problem, which is what the hydraulic engineer suggested. But I was ‑ ‑
Are you saying ‑ ‑ ‑?‑‑‑ ‑ ‑ ‑ saying that that wasn’t my cost because we never
knew that there was going to be a water problem on your – your house. You
didn’t know. None of the bores picked up the – the problem. It was only ‘til
when we were building it, we ran into it at the beginning with Paul, the
waterproofer – as you remember the water came through the bottom of the ‑ ‑ ‑
Let me get my notes and let me get your quotations, please?‑‑‑So most of these
photos you’ve got here relate to the fact that that water was up so high and was
wicking up it actually rotted out timber, et cetera, et cetera, and it was just
because that water wasn’t dropped down, and that had to be done.6
Findings
[49] I found Mr Haley to be a truthful witness. He seemed to me to have a reliable memory
and I found him consistent in his testimony, which he gave openly and without
exaggeration or obfuscation. I accept his evidence that he took the advice of a
hydrologist in November 2024 and the hydrologist either advised him or confirmed
to him as follows; that there was water beneath the foundations of the house; that the
cause of the water problem was the water wicking up though the foundations of the
house; that to remedy the problem ag pipe on the Eastern side should be installed at a
depth lower than the foundations; and that the ag pipe should continue round to the
front of the house to empty into a pit on the Western side of the house from which it
could be pumped out into the street.
[50] The parties agree that there was no further water problem after the work was done in
November 2024.
[51] As such I make the following findings.
[52] The cause of the water problem was water pooling or flowing beneath the slab and
wicking up through concrete into the interior of the dwelling.
[53] The presence of water pooling or flowing beneath the slab was unknown to the parties
at time of contract and during the construction.
[54] The scope of work merely required ag pipe to be “placed” around the ground floor
East, West and North slab perimeter. There was no requirement to lay the ag pipe
below the level of the footings.
[55] Ag pipe placed around the perimeter of the slab regardless of diameter or sock
covering would not have remedied the water problem.
6 T3-16 L33.
-- 8 of 13 --
9
[56] Under the scope of work the ag pipe on the North and West sides were to run to the
West side. The scope of works made no similar provision for run off for the ag pipe
placed on the Eastern side of the house.
[57] The work done in November 2024 followed the suggestion of the hydrologist and was
outside the scope of work of the contract.
[58] Throughout the construction the parties believed the water problem was due to poor
waterproofing done by the builder or its subcontractors, which was wrong.
Latent condition
[59] Under the contract Mr Porter, not the builder, was responsible for providing both
foundation data and levelling the site. The foundation data failed to reveal the presence
of underground water.
[60] The water pooling or flowing under the slab was a latent condition unknown to the
parties at time of contract. Under the general conditions latent condition was defined
as:
… any physical condition, including artificial things, on or around the land,
including surface and subsurface conditions, which differ materially from the
physical conditions reasonably expected by the Contractor at the time of
formation of this contract.
[61] The latent condition was not the water affected interior of the dwelling, but the
presence of water immediately below the slab. The damage caused by the water
wicking up from below was evidence of the latent condition but not the latent
condition itself.7
[62] The difference between visible damage and knowledge of a latent defect or condition
was addressed in Nissen and Anor v Jarotech Pty Ltd [2012] QCAT 307 where it was
said:
[75] … A defect may be different from a physical thing which may be
observed. A knowledge of some cracking or settlement does not amount
to knowledge of the inadequacy or the defect being manifest.
[63] In Eko Investments Pty Limited v Austruc Constructions Limited & Ors; The Owners
Strata Plan No 64970 v Austruc Constructions Limited & Ors [2009] NSWSC 208
concerning when a latent defect was known and time limitations for legal proceedings
commenced to run, Bergin CJ in Eq said this:
[73] … The present case is not dissimilar to the facts in Pullen. In Pullen there
were observable physical symptoms or defects such as a large horizontal
gap, which had opened up in the north wall about one metre above the
ground. However the latent defect was the inadequacy or unsuitability of
the footings. Although the physical defect was observable, the latent
defect of inadequacy of the footings was not discovered until a later time.
In this case the physical defect, the cracking in the walls and ingress of
water was observable, but the latent defects, the faulty design of the
windows and the inappropriate rendering over the control joints
inconsistently with the design as specified in the Handbook, the
7 Pullen & Anor v Gutteridge Haskins and Davey Pty Ltd [1993] 1 VR 27.
-- 9 of 13 --
10
specifications and the drawings were not identified until after 8 February
2002.
[74] … the defect, not merely the presence of physical damage, had to be
known or manifest.
[64] In the case at hand, the latent condition remained unknown until after the construction
work was finished. It was not until some four years had passed that what the latent
condition was was finally known. The latent condition was not apparent or manifest
in the sense of becoming discoverable by reasonable diligence8 during the
construction.
[65] The builder exercised reasonable diligence during construction engaging qualified
tradespeople to investigate and remedy what was thought to be the problem. He turned
to his waterproofer for advice and engaged him to do additional waterproofing work
and Mr Porter said in his email of 30 March 2020 that he had also contacted his own
waterproofing expert for advice about the waterproofing.
[66] None of the contractors identified the true cause of the problem until the hydrologist
was engaged years after the construction was finished.
[67] The latent condition was not known until after the contract work was completed and
therefore the obligation of the builder under clause 14.1 to notify the owner on
becoming aware of a latent condition was never triggered.
[68] Mr Porter was not entitled to withhold final payment on the basis that the construction
work was never finished because he was left with a defective building with significant
water entry problems.
Practical completion
[69] The builder commenced proceedings claiming an amount of $83,542.05 representing
the final payment due under the contract, but at hearing reduced its claim to
$77,792.05 as addressed below.
[70] By clauses 17.7 and 17.10 of the general conditions:
17.7 No Possession of the Works before payment
Unless the owner has obtained the contractor’s prior written consent, the owner
must not take possession of the Works, nor is the owner entitled to the keys to
the works, prior to making full payment to the contractor of the contract price.
…
17.10 Consequences of owner taking possession of the Works when not
entitled to do so
If the owner takes possession of the Works when not entitled to do so under this
contract, the works are deemed to have reached practical completion without
any defects or omissions on the day that the owner takes possession, and the
owner is liable to the contractor for any loss or damage that the contractor may
incur or suffer as a result.
8 Ibid.
-- 10 of 13 --
11
[71] Mr Haley’s evidence is that Mr Porter took possession of the site without permission
on 18 August 2019. Mr Porter admits early occupation in August 2019 but denies it
was without permission.
[72] Mr Porter is unable to hand up any document in writing evidencing permission granted
as required by clause 17.7. I accept Mr Haley’s evidence that Mr Porter took
occupation without the builder’s permission.
[73] Indeed clause 17.7 granted the builder a method of inducing final payment by keeping
the owner out of the property until payment was made. That useful provision is set at
nought by allowing an owner into possession before final payment is made. Indeed,
that is what occurred here, with Mr Porter making no attempt to pay any part of the
final payment, even any part which was not disputed, before the rain event of 13
December 2020 occurred. After that, Mr Porter refused to pay anything until he was
satisfied the builder had fixed the water problem.
[74] Accordingly, given Mr Porter entered into possession of the property early without
permission, clause 17.10 applies and the works were deemed to have reached practical
completion without any defects or omissions on the day of entry, Sunday 18 August
2019.
[75] The effect of practical completion being deemed to have been reached is broader than
entitling the builder to claim loss and damage against the owner pursuant to clause
17.10. The notices required by clause 17.1 were not necessary for one thing. For
another, there were deemed to be no defects or omissions in the work.
[76] By clause 11.6, Method C progress payments had been agreed to be utilised by the
parties. By clause 11.6(b)(ii) a claim could be made for practical completion stage on
or after the date of practical completion.
[77] Mr Haley issued a progress claim for practical completion on Friday 30 August 2019
in the amount of $83,542.05. By clause 11.7 payment of that claim became due within
the period set by item 20 of the schedule to the contract, namely five business days.
Payment was therefore due on Friday 6 September 2019.
[78] I note that the practical completion stage work was effectively finished at or about the
time of Mr Porter’s occupation of the property in any case. Mr Porter sent an email to
Mr Haley on Wednesday 21 August 2019 asking Mr Haley to prepare his final account
and to email it by the end of that week.
[79] Had the final work not been completed, then whilst practical completion might be
deemed to have occurred, the builder’s claim would arguably have been limited to
loss or damage suffered as provided for by clause 17.10.9
[80] At hearing Mr Haley advised that the builder’s claim was reduced to the amount of
$77,792.05 after allowing a credit of $750 for gas not supplied during construction
and acknowledging a payment of $5,000 made by Mr Porter on 29 August 2019.
9 In Queensland the strictures associated with s 34(1) of Schedule 1B of the Act (any claim for payment
must be proportionate to the value of the work relating to the claim) and s 108D of the Act (prohibition
on contracting out of the provisions of the Act) must be followed.
-- 11 of 13 --
12
[81] Mr Haley exhibits a copy of what he describes as the invoice for final payment to a
statement of evidence. The invoice exhibited however is dated 30 June 2020 and
includes a claim for interest to that date $7,436.96.
[82] Ignoring the interest ($7,436.96) the invoice sets out details of the final claim. It shows
“extras” totalling $56,469.15; “credits” of $57,977.10; and a further credit for a
payment of $10,000 (made by Mr Porter presumably).
[83] The amount outstanding is therefore as follows:
Practical Completion claim (balance contract amount) $95,050.00
Less credits allowed $57,977.10
Plus extras $56,469.15
Less payment made $10,000.00
Less interest claimed but not then accrued $ 7,436.96
Subtotal $76,105.09
Plus GST 10% $ 7,610.50
Total $83,715.59
[84] Mr Haley says the claim for practical completion (final) was $83,542.05. That is less
than the calculations derived from the invoice, but it is appropriate to adopt his figure
which is less. From that the builder conceded at hearing that further credit for gas not
supplied and a further payment of $5,000 reduces its claim to $77,792.05.
[85] Throughout the hearing Mr Porter referred to the final monies due the builder needed
to be ‘reconciled’. Despite that claim Mr Porter failed to lead any evidence identifying
items claimed by Mr Haley that were either incorrect or inaccurate as to amount or
further credits due Mr Porter not included in Mr Haley’s final invoice. In result there
is only the invoice evidence tendered by the builder available for consideration.
[86] I determine that the amount outstanding to the builder at completion was $77,792.05.
Counter application
[87] Mr Porter initially claimed an amount of $191,000 by way of counter application for
the cost of remedying defective work. The claim was based in large part on Mr
Porter’s argument that the water entry problem was due to poor waterproofing work
done by Mr Haley, which I have found was not the cause.
[88] Mr Porter offered no supporting evidence. Evidence from a quantity surveyor based
in large part on the erroneous view that the water problem was caused by poor
waterproofing work performed by Mr Haley was not led at hearing.
[89] On the close of the final day of hearing Mr Porter advised the Tribunal in any case
that he was no longer pursuing his counter application.
Interest
[90] Mr Haley claims interest on the amount due. By clause 11.9 if an owner fails to make
any payment to the contractor within the times for payment under the contract the
contractor is entitled to interest on the outstanding amount at the rate stated in item 19
-- 12 of 13 --
13
of the schedule, payable from the day after the date that payment was due until the
date of payment.
[91] Item 19 of the schedule makes provision for payment of interest at the rate of 10 per
cent per annum.
[92] The final payment was due for payment on Friday 6 September 2019. The amount
outstanding was. Allowing interest at 10 per cent per annum from 7 September 2019
on that amount the interest outstanding totals $50,564.83 to date of judgment.
Summary
[93] Mr Porter must pay the builder the amount of $77,792.05 for the outstanding final
claim plus interest at the rate of 10 per cent per annum on that amount from 7
September 2019 until payment.
-- 13 of 13 --
Official source: https://www.sclqld.org.au/caselaw/QCAT/2026/118