Baguley Build Pty Ltd v Olcon Concrete & Construction Pty Ltd & Anor [2025] QSC 126
SUPREME COURT OF QUEENSLAND
CITATION: Baguley Build Pty Ltd v Olcon Concrete & Construction Pty
Ltd & Anor [2025] QSC 126
PARTIES: BAGULEY BUILD PTY LTD
ACN 155 155 392
(applicant)
v
OLCON CONCRETE & CONSTRUCTION PTY LTD
ACN 657 516 204
(first respondent)
and
PHILIP LAWTON
(second respondent)
FILE NO/S: BS 1374/25
DIVISION: Trial Division
PROCEEDING: Application
ORIGINATING
COURT:
Supreme Court of Queensland at Brisbane
DELIVERED ON: 3 June 2025
DELIVERED AT: Brisbane
HEARING DATE: 16 May 2025
JUDGE: Copley J
ORDER: The application for a declaration that Adjudication
Decision 2625181 is void on the ground of jurisdictional
error is refused.
CATCHWORDS: CONTRACTS – BUILDING, ENGINEERING AND
RELATED CONTRACTS – REMUNERATION –
STATUTORY REGULATION OF ENTITLEMENT TO
AND RECOVERY OF PROGRESS PAYMENTS –
ADJUDICATION OF PAYMENT CLAIMS – where the
applicant challenges the adjudicator’s decision for
jurisdictional error – where the applicant alleges the
adjudicator erred by characterising the applicant’s submissions
in the adjudication response as ‘new reasons’ within the
meaning of s 82(4) of the Building Industry Fairness (Security
of Payment) Act 2017 (Qld) – whether it was within the
adjudicator’s jurisdiction to decide whether the submissions
were properly made
Building Industry Fairness (Security of Payment) Act 2017
(Qld), s 68, s 69, s 75, s 76, s 79, s 82, s 84, s 88
-- 1 of 14 --
2
Acciona Agua Australia Pty Ltd v Monadelphous Engineering
Pty Ltd (2020) 4 QR 410
Civmec Electrical & Instrumental Pty Ltd v Southern Cross
Electrical Engineering Limited & Ors [2019] QSC 300
LPDT v Minister for Immigration, Citizenship, Migrant
Services and Multicultural Affairs (2024) 418 ALR 152
Niclin Constructions Pty Ltd v Robotic Steel Fab Pty Ltd
(2023) 16 QR 336
Perform (NSW) Pty Ltd v MEV-AUS Pty Ltd & Anor [2009]
NSWCA 157
COUNSEL: A J Greinke for the applicant
T Ambrose for the first respondent
Submitting appearance for the second respondent
SOLICITORS: Shand Taylor Lawyers for the applicant
Baker Merz Lawyers for the first respondent
[1] By application filed on 3 April 2025 the applicant seeks a declaration that a decision
made by the second respondent (“the adjudicator”) on 17 September 2024 is void.
The decision was made or purported to be made pursuant to s 88 of the Building
Industry Fairness (Security of Payment) Act 2017 (Qld) (“the Act”).
[2] The adjudicator submitted an appearance abiding any order of the Court save as to
costs.
[3] The applicant asserts that the decision is void because it is affected by jurisdictional
error, alternatively, because the adjudication process miscarried due to fraud or
misleading conduct on the part of the first respondent. The parties agree determination
of the issue of jurisdictional error does not require the Court to decide any disputed
facts and so should be resolved now. They agree that if the applicant does not succeed
on jurisdictional error, directions will be required concerning a trial of the other issue.
[4] The applicant submits that jurisdictional error is to be considered by determining
whether the adjudicator erred in concluding that s 82(4) of the Act precluded the
applicant from relying on paragraphs 80-135 of its adjudication response as reasons
for withholding payment of a payment claim. The first respondent submits that
jurisdictional error is to be considered by addressing the question of whether the
adjudicator breached the obligation in s 88(2) to consider submissions “properly
made” in support of a payment schedule.
[5] For the purposes of this case it is sufficient to note that a payment claim is a written
document that identifies construction work to which a progress payment relates and
states the amount of the progress payment claimed to be payable.1 A payment
schedule is a written document that states why the amount proposed to be paid in
relation to the claim is less than the amount sought and includes reasons why the
payment is withheld.2
1 Building Industry Fairness (Security of Payment) Act 2017 (Qld), s 68.
2 Building Industry Fairness (Security of Payment) Act 2017 (Qld), s 69.
-- 2 of 14 --
3
[6] For the reasons set out below the application for a declaration that the decision is void
on the ground of jurisdictional error is refused.
Background
[7] The first respondent, a concreting contractor, was subcontracted to the applicant. On
13 July 2024 the first respondent gave the applicant a payment claim in the form of a
tax invoice (numbered 1369) for $137,075.40 (incl. GST) for works carried out
relating to the construction of sports facilities. Ultimately, the adjudicator issued his
decision in favour of the first respondent for 100% of the sum claimed.
[8] Tax invoice 1369 reproduced exactly the labour line items for some earlier payment
claims (numbered 1354, 1355 and 1357) that the first respondent had given to the
applicant; it also claimed an additional 20 hours of labour on 2 February 2024 (which
the first respondent accepts was a new item); provided a daily breakdown of labour
from an earlier payment claim (numbered 1351) but reduced to a total of 583.5 hours;
and did not reproduce claims for accommodation.
[9] On 25 July 2024 the applicant issued a payment schedule, which the first respondent
accepts comprised a cover email and an attached payment schedule. The email stated:
“I note invoice 1369 which was sent on the 13th of July.
This appears to be the consolidation of the previous claims (Inv 1351,
1354, 1355, 1357).
This invoices have been previously address via payment summaries
and the QBCC process that you initiated. (sic)
The most recent version of these previous claims has been reviewed,
and our position remains unchanged. In that, all monies due and
payable have been addressed.”
[10] The payment schedule attached was for $0 and stated:
“Additional Reasons for withholding payment
This is a consolidation of the previous invoices 1351, 1354, 1355,
1357
Reasons for withholding payment have not changed”
[11] The first respondent had issued the earlier payment claims on 31 January 2024 in the
cases of invoices 1351 and 1354 (for $70,153.60 and $10,575.40 respectively), 22
February 2024 in the case of invoice 1355 (for $44,559.90) and 8 March 2024 in the
case of invoice 1357 (for $30,163.10). The applicant issued payment schedules in
response to each of these claims on 19 March 2024, scheduling negative amounts for
each claim except for invoice 1351 which scheduled $0.00. The payment schedules
stated reasons for withholding payments, specifically, unsigned timesheets, no
receipts for accommodation, inefficient work and excessive downtime, and defective
works including incorrect falls, finishes and stairs.
[12] On 13 August 2024 the first respondent applied pursuant to s 79 of the Act for
adjudication of the payment claim concerning only invoice 1369. In submissions
made to the adjudicator in support of the application the first respondent contended
-- 3 of 14 --
4
that the effect of ss 69(c), 82(4) and 88(2)(d) of the Act meant that the applicant could
not “use ‘past explanations’ for withholding payment not included in its Payment
Schedule in its Adjudication Response”.
[13] In the adjudication response, made pursuant to s 82, the applicant contended that it
was permissible for a payment schedule to incorporate reference to material extrinsic
to the payment schedule where that material was specifically identified with sufficient
particularity and had recently passed between the claimant and the respondent. The
applicant contended that the claimant (the first respondent) knew the reasons relied
on for withholding payment because it had identified those reasons in its adjudication
application.
The adjudicator’s reasons
[14] The adjudicator set out the competing submissions of the parties as follows:
“70. Contrasting submissions around compliance with s69(c) of the
Act have been provided by the Claimant and Respondent in
relation to the validity of the reasons included in the payment
schedule for withholding payment.
71. The payment schedule provides 2 reasons for withholding
payment. Firstly, ‘This is a consolidation of the previous
invoices 1353, 1354, 1355, 1357’ and secondly, ‘Reasons for
withholding a payment have not changed’.
72. The Claimant submits that the payment schedule does not
provide any reasons for withholding payment, and instead
relies on previous reasons which have not changed. For the
purposes of the adjudication the Claimant relies on s69(c) of
the Act for the requirement to provide reasons; s82(4) of the
Act for the inability of the Respondent to include new reasons
in an Adjudication Response; and s88(2)(d) of the Act to
confirm the Adjudicator can only consider the payment
schedule to which the application relates. The Claimant has also
provided case law to support their position.
73. The Respondent submits reasons have been adequately
provided within the payment schedule with a supporting case
law example. An additional case law example has been
included to confirm it does not matter how reasons are
expressed, with what formality or lack of it, and with what
facility or awkwardness. Further case law examples have also
been included to confirm examples of valid reasons included in
other payment schedules. Finally, case law examples have been
included to confirm that a covering email which attaches
documents in response to a payment may form part of the
schedule.
74. The Respondent also provides an alternative view of the case
law relied upon by the Claimant in relation to past reasons.”
(Footnotes omitted)
-- 4 of 14 --
5
[15] The adjudicator then considered the merits of the submissions:
“75. For compliance with s69(c) of the Act, when the amount
proposed to be paid is less than the amount stated in the
payment claim, the payment schedule must state why the
amount proposed to be paid is less, including the respondent’s
reasons for withholding any payment. The practical application
of s69(c) is summed up well in Minimax Fire Fighting Systems
Pty (WA Pty Ltd) Ltd v Bremore Engineering [2007] QSC 333
at [27] which states ‘The whole purpose of such a document is
to identify what amounts are in dispute and why. The delivery
of a payment claim and a payment schedule is meant to identify,
at an early stage, the parameters of a dispute about payment’.
76. Whilst I generally agree with the Respondent’s submission that
the Claimant had knowledge as to what the reasons for
withholding payment related to given the content of the
Adjudication Application, it is not possible from the provided
reasons in the payment schedule to distinguish what the exact
reasons are, what reason relates to which claimed item and for
what claimed value.
77. I have particularly considered the Respondents submission and
provided case law around the included reasons contained in the
payment schedule subject of the adjudication but I find they are
not particularly relevant to this adjudication.
78. The Claimant has not simply submitted the same unchanged
payment claim again which may justify a reference to a
previous payment schedule. Instead, time has passed,
circumstances have changed from the previous assessment as
evidenced in the correspondence included by both parties, and
the Claimant has provided their previously unpaid claims in a
new claim and format. This is a reasonable course of action
permitted by s75(5) of the Act. Therefore, reasons in a payment
schedule should be specific to the claim it is responding to.
79. This position is further reinforced in the Statutory Declaration
of Simon Vigliante included in the Adjudication Response. At
paragraph 15 it states ‘I responded with the payment schedule
that is the subject of the Application. I had understood that there
was no reference date and that they could not keep trying to
send payment claims so my response referred to my previous
payment schedules and I confirmed that our position was
unchanged’. From this statement it appears that the Respondent
relied on their belief that there was no reference date rather than
a belief that the previous reasons remained appropriate.
80. My view is not changed when considering the other items
raised by the Respondent in relation to the reasons included on
the payment schedule. The formality, or lack thereof, of the
provided reasons does not impact my decision as to their
appropriateness. The information contained in the covering
-- 5 of 14 --
6
email also does not assist in advancing the detail of the
provided reasons if it were to form part of the payment
schedule.
81. Regardless of the above, the Respondent has strictly complied
with s69(c) of the Act in that they have provided reasons for
their payment being less than the amount stated in the payment
claim. I therefore find in favour of the Respondent on this issue
and decide that the payment schedule dated 26 July 2024 is
valid in accordance with s69 of the Act.
82. However, I also find in favour of the Claimant on this issue. In
applying s88(2)(d) of the Act, I can only consider the payment
schedule to which the Application relates. A reference to
previous invoices or payment summaries, and a reference to
previous unchanged reasons, does not provide adequate context
to confirm or identify what and why amounts are in dispute in
response to a new and updated payment claim.
83. Pursuant to s82(4) of the Act the Adjudication Response must
not include any reasons (new reasons) for withholding payment
that were not included in the payment schedule when given to
the Claimant.
84. Without itemising or applying the ‘reasons that have not
changed’, the Respondent is prevented from raising these in the
Adjudication Application as they are new reasons pursuant to
s82(4) of the Act.
…
89. The Respondent has provided a substantial Adjudication
Response and included submissions in relation to the claim and
valuation. However, none of these reasons raised in the
Adjudication Response for withholding payment were included
in the payment schedule when given to the Claimant. I therefore
decide these to be new reasons pursuant to s82(4) of the Act.
Pursuant to s88(3)(b) of the Act I am unable to consider new
reasons.” (Footnotes omitted)
[16] The parties accept that the reference to “the Adjudication Application” in paragraph
84 is a mistake and should be treated as “the Adjudication Response”.
Parties’ contentions
[17] The applicant argues that jurisdictional error occurred because the adjudicator
wrongly applied s 82(4) when he characterised the applicant’s submissions in the
adjudication response as new reasons for withholding payment. The adjudicator was
wrong not to recognise that reasons in a payment schedule may be incorporated by
referring to earlier payment schedules and correspondence between the parties.3 The
3 Reliance was placed on Perform (NSW) Pty Ltd v MEV-AUS Pty Ltd & Anor [2009] NSWCA 157 at
[50] (Perform (NSW)).
-- 6 of 14 --
7
result of this erroneous characterisation was that the adjudicator failed to consider a
matter s 88(2) obliged him to consider and this too constituted jurisdictional error.4
[18] The first respondent argues that the adjudication decision was reached after a
consideration of the matters s 88(2) required the adjudicator to consider. The
adjudicator had regard to the applicant’s adjudication response and that response
included submissions about why the adjudicator should take into account not just the
payment schedule referrable to Invoice 1369 but also other documents incorporated
by reference in the payment schedule and what those other documents were. Having
had regard to these submissions the adjudicator found that the adjudication response
included reasons for why the applicant withheld payment that were not included in
the payment schedule even if the schedule was understood as incorporating other
documents and so the adjudication response included new reasons for withholding
payment. In these circumstances ss 82(4) and 88(3)(b) prohibited the adjudicator
from considering new reasons. The first respondent argues that even if the adjudicator
was wrong in not considering this aspect of the adjudication response such an error
does not constitute jurisdictional error, it would only be an error within the
adjudicator’s jurisdiction. Lastly, to establish jurisdictional error the applicant needs
to prove that the error was material in the sense that had it not been made there was a
realistic possibility the adjudication decision could have been different.5
Relevant statutory context
[19] The statutory provision which confers functions on an adjudicator is the correct point
from which to commence when considering the issue of jurisdictional error. That
provision is s 88, though it assists to notice the statutory context in which s 88
appears.
[20] The relevant provisions are as follows:
“68 Meaning of payment claim
(1) A payment claim, for a progress payment, is a written
document that—
(a) identifies the construction work or related goods
and services to which the progress payment relates;
and
(b) states the amount (the claimed amount) of the
progress payment that the claimant claims is
payable by the respondent; and
(c) requests payment of the claimed amount; and
(d) includes the other information prescribed by
regulation.
…
4 Reliance was placed on Acciona Agua Australia Pty Ltd v Monadelphous Engineering Pty Ltd (2020)
4 QR 410 at [35], [35](b) and [35](e) (Acciona).
5 LPDT v Minister for Immigration, Citizenship, Migrant Services and Multicultural Affairs (2024) 418
ALR 152 at [7].
-- 7 of 14 --
8
(3) …
69 Meaning of payment schedule
A payment schedule, responding to a payment claim, is a
written document that—
(a) identifies the payment claim to which it responds; and
(b) states the amount of the payment, if any, that the
respondent proposes to make; and
(c) if the amount proposed to be paid is less than the amount
stated in the payment claim—states why the amount
proposed to be paid is less, including the respondent’s
reasons for withholding any payment; and
(d) includes the other information prescribed by regulation.
…
75 Making payment claim
(1) A person (the claimant) who is, or who claims to be,
entitled to a progress payment may give a payment claim
to the person (the respondent) who, under the relevant
construction contract, is or may be liable to make the
payment.
…
(5) A payment claim may include an amount that was
included in a previous payment claim.
…
(9) …
76 Responding to payment claim
(1) If given a payment claim, a respondent must respond to
the payment claim by giving the claimant a payment
schedule …
…
(4) …
…
79 Application for adjudication
(1) A claimant may apply to the registrar for adjudication of
a payment claim (an adjudication application) if—
(a) …
-- 8 of 14 --
9
(b) the amount stated in the payment schedule, given in
response to the payment claim, is less than the
amount stated in the payment claim.
…
(3) The adjudication application may be accompanied by
submissions relevant to the application.
…
(6) …
…
82 Adjudication response
(1) After being given notice of an adjudicator’s acceptance
of an adjudication application under section 81, the
respondent may give the adjudicator a response to the
adjudication application (the adjudication response).
(2) However, the respondent must not give an adjudication
response if the respondent failed to give the claimant a
payment schedule as required under section 76.
(3) The adjudication response—
(a) must be in writing; and
(b) must identify the adjudication application to which
it relates; and
(c) may include the submissions relevant to the
response the respondent chooses to include.
(4) However, the adjudication response must not include any
reasons (new reasons) for withholding payment that were
not included in the payment schedule when given to the
claimant.
(5) The adjudicator may require the respondent to resubmit
the adjudication response without the new reasons.
…
88 Adjudicator’s decision
(1) An adjudicator is to decide—
(a) the amount of the progress payment, if any, to be
paid by the respondent to the claimant (the
adjudicated amount); and
(b) the date on which any amount became or becomes
payable; and
(c) the rate of interest payable on any amount.
-- 9 of 14 --
10
(2) In deciding an adjudication application, the adjudicator is
to consider the following matters only—
(a) the provisions of this chapter and, to the extent they
are relevant, the provisions of the Queensland
Building and Construction Commission Act 1991,
part 4A;
(b) the provisions of the relevant construction contract;
(c) the payment claim to which the application relates,
together with all submissions, including relevant
documents, that have been properly made by the
claimant in support of the claim;
(d) the payment schedule, if any, to which the
application relates, together with all submissions,
including relevant documents, that have been
properly made by the respondent in support of the
schedule;
(e) the results of any inspection carried out by the
adjudicator of any matter to which the claim relates.
(3) However, the adjudicator must not consider any of the
following—
(a) an adjudication response, to which the adjudication
application relates, that was not given to the
adjudicator within the time required under section
83;
(b) a reason included in an adjudication response to the
adjudication application, if the reason is prohibited
from being included in the response under section
82.
…
(5) The adjudicator’s decision must—
(a) be in writing; and
(b) include the reasons for the decision, unless the
claimant and the respondent have both asked the
adjudicator not to include the reasons in the
decision.
…
(7) …”
[21] Section 88(1) provides that the adjudicator’s function is to decide the amount of the
progress payment, if any, which is to be paid, the date on which it is due and payable
and the rate of interest. Section 88(2) provides that in deciding an application the
adjudicator is only to consider the matters set out in subparagraphs (a) to (e) of
s 88(2). Of particular relevance to this case is the requirement to consider the
-- 10 of 14 --
11
provisions of chapter 3 of the Act and the payment schedule along with all the
submissions, including relevant documents, that were properly made by the
respondent in support of the schedule. However, s 88(3) provides for matters an
adjudicator must not consider. Relevantly, the adjudicator must not consider a reason
included in an adjudication response if the reason is prohibited from being included
in the response under s 82. Section 82(4) provides that the adjudication response
must not include any reasons (new reasons) for withholding payment that were not
included in the payment schedule when it was given to the claimant. The adjudicator
may require a respondent to resubmit the adjudication response without the new
reasons: s 82(5).
Why jurisdictional error is not made out
[22] Examination of the adjudicator’s reasons shows that the adjudicator discharged the
function of deciding the amount of the progress payment in accordance with s 88(2)
and (3). The reasons evidence consideration of the applicant’s payment schedule and
the submissions the adjudicator regarded as properly made in support of the schedule.
From paragraph 71 it is apparent that the adjudicator regarded the payment schedule
as advancing two reasons for the applicant having withheld payment. In doing so he
considered the payment schedule from two standpoints.
[23] First, confined to the two reasons set out in paragraph 71 the adjudicator did not
regard the schedule as persuasive because he said it was not possible from those
reasons “to distinguish what the exact reasons are, what reason relates to which
claimed item and for what claimed value” (paragraph 76). The adjudicator said he
“particularly considered” the applicant’s submissions and the case relied on about
“included reasons” (paragraph 77). Having found that the first respondent had not
submitted the same payment claim and had included “previously unpaid claims in a
new claim and format” the reasons in a payment schedule had to be responsive to the
new claim (paragraph 78).
[24] Second, even if the payment schedule was regarded as containing the “other items
raised by the Respondent in relation to the reasons included on the payment schedule”
that information did not assist the applicant’s argument for resisting the payment
claim (paragraph 80). Paragraph 89 demonstrates that the adjudicator considered
whether the additional reasons the applicant sought to rely on were to be considered.
He said “none of these reasons raised in the Adjudication Response for withholding
payment were included in the payment schedule when given to the Claimant” and so
they were new reasons which s 88(3) prevented him from considering. So in arriving
at the conclusion that the applicant could not rely on new reasons for resisting the
claim the adjudicator considered the applicant’s contentions about why the payment
schedule was not to be regarded as confined in the way that the first respondent argued
that it should.
[25] The adjudicator’s statutory function was to “consider” the payment schedule for
invoice 1369 along with all submissions, including relevant documents, that were
“properly made” by the applicant in support of the payment schedule. There was no
legislative obligation to accept the submissions, just to consider them and only to the
extent that the adjudicator regarded them as properly made. As long as the
adjudicator considered them he discharged his function in accordance with s 88(2).
Section 88(3) prevented the adjudicator from considering a reason advanced in the
applicant’s adjudication response if the reason was prohibited from being included in
-- 11 of 14 --
12
the response under s 82. It was a matter for the adjudicator to determine whether the
adjudication response included any new reasons for withholding payment that had
not been included in the payment schedule. This is apparent from s 82(5).
Authorising the adjudicator to require a person in the applicant’s position to resubmit
an adjudication response without the new reasons demonstrates that the legislature
has made plain that whether an adjudication response contains new reasons is a matter
for the adjudicator to determine.
[26] This understanding of the adjudicator’s function accords with that stated in Civmec
Electrical & Instrumental Pty Ltd v Southern Cross Electrical Engineering Limited
& Ors.6 That case concerned whether an adjudicator erred in characterising reasons
for withholding payment found in the adjudication response as not being included in
the payment schedule and whether if he did err in this way the error constituted
jurisdictional error. Mullins J said there was a:7
“… difference between an adjudicator’s decision made in error that a
submission was not properly made (which would be a decision within
jurisdiction) and an adjudicator’s failure to consider a submission that
the adjudicator found was properly made (which may amount to a
jurisdictional error, because the adjudicator has not performed the
function required by s 88(2)(d) of the Act).”
[27] Mullins J went on to say: 8
“To the extent the adjudicator … did not consider the adjudication
response to the extent that it included reason for withholding payment
that were not identified in the payment schedule or were determined
by the adjudicator not to be valid reasons for withholding payment,
the adjudicator made a decision, as to which part of the adjudication
response could be characterised as a properly made submission. … it
was within the adjudicator’s jurisdiction to make those decisions as
to what was a properly made submission. Even if the adjudicator
made an error (which it is not apparent that he did) in concluding that
parts of the adjudication response should be rejected on the basis of
not being a properly made submission, that would be an error within
jurisdiction and not reviewable.”
[28] This approach to s 88(2) accords with that adopted in Niclin Constructions Pty Ltd v
Robotic Steel Fab Pty Ltd where Applegarth J said:9
“[18] The valid exercise of an adjudicator’s jurisdiction is
conditioned on the adjudicator having considered the matters
set out in s 88(2) of the Act. The valid exercise of an
adjudicator’s decision is not conditioned on the adjudicator
reaching what is objectively the correct conclusion on the
questions of fact or law that are required by the consideration
of the matters set out in s 88(2). Expressed differently, ‘there
are many errors of fact and law which might be made by an
6 [2019] QSC 300.
7 At [17].
8 At [38].
9 (2023) 16 QR 336 at [18]-[19].
-- 12 of 14 --
13
adjudicator which would not be regarded as going to
jurisdiction’. (Footnotes omitted)
[19] In this matter, the adjudicator considered the issue of whether
matters contained in the District Court Statement of Claim
were raised by the Payment Schedule in circumstances in
which the Statement of Claim was not attached to it. Having
considered that issue, the adjudicator reached a conclusion.”
[29] Notwithstanding an adjudicator’s error in determining what could be considered
under a provision analogous to s 88(2) in Perform (NSW) that error was not regarded
as a jurisdictional error.10
[30] The approach taken in these cases towards jurisdictional error in s 88 is not at all
inconsistent with what was said in Acciona. In that case, Bond J said:11
“Second, the valid exercise of an adjudicator’s jurisdiction is
conditioned on the adjudicator having arrived at his or her conclusion
by a process which considers the matters set out in s 88(2) of the
Payment Act. But as to this, the following important matters must be
noted:
(a) The valid exercise of an adjudicator’s jurisdiction is not
conditioned on the adjudicator reaching what is objectively
the correct conclusion on all of the questions of fact or law
required by the consideration of the matters set out in
s 88(2). Or, to put it another way, there are many errors of
fact and law which might be made by an adjudicator which
would not be regarded as going to jurisdiction.
(b) On an application to set aside an adjudicator’s decision for
jurisdictional error, the question is not whether the Court
would have come to the same conclusion as the adjudicator.
Rather, the question is whether the adjudicator arrived at his
or her conclusion by a process which failed to consider the
matters set out in s 88(2).
…
(e) Adjudicators under the Payment Act do not have to get the
answer right, but if it is demonstrated that they have not gone
about their task by carrying out the active process of
intellectual engagement with the issues and the submissions
before them that the Payment Act requires, then they will
have fallen into jurisdictional error because they will not
have done the very thing s 88(2) of the Payment Act required
them to do.” (Footnotes omitted)
[31] Though in aid of the contention that there is a jurisdictional error the applicant submits
that paragraph 81 of the adjudicator’s reasons conflicts with paragraphs 82 and 83 of
his reasons, if this is indicative of error it is not an error which goes to jurisdiction.
10 Perform (NSW) at [58]-[63] and [76].
11 Acciona at [35].
-- 13 of 14 --
14
[32] As jurisdictional error has not been established it is unnecessary to consider the issue
of materiality raised by the first respondent.
Orders
[33] I make the following order:
1. The application for a declaration that Adjudication Decision 2625181 is void on
the ground of jurisdictional error is refused.
[34] I will hear the parties as to costs and about the directions necessary for the trial of the
remaining issue.
-- 14 of 14 --
Official source: https://www.sclqld.org.au/caselaw/QSC/2025/126