[2025] NSWCATAP 178
General information, not legal advice.
NCAT Appeal Panel
2025-07-30
P H Molony, Senior MemberJ Redfern PSM, Senior Member
Original judgment source is linked above.
Abergeldie Contractors Pty Ltd v Fairfield City Council [2107] NSWCA 113
Alexandria Landfill Pty Limited v Transport for NSW [2020] NSWCA 165
AW v WW (No 2) [2024] NSWSC 146
Bimson, Roads & Maritime Services v Damorange Pty Ltd [2014] NSWSC 734
Donohoe v Albulario [2025] NSWSC 9
Dranichnikov v Minister for Immigration and Multicultural Affairs [2003] HCA 26
Electricity Generation Corporation v Woodside Energy (2014) 215 CLR 640
FVA v Commissioner for Police, NSW Police Force [2024] NSWCATAP 127
Hawach v A & A Building Society Pty Ltd [2024] NSWCATAP 138
House v The King [1936] HCA 40
Hungry Jack's Pty Ltd v Fourtounas [2020] NSWCA 325
John Prendergast & Vanessa Prendergast v Western Murray Irrigation Ltd [2014] NSWCATAP 69
Mainteck Services Pty Ltd v Stein Heurtey SA [2014] NSWCA 184
Mamo v Surace [2014] NSWCA 58
Maurici v Chief Commissioner of State Revenue [2003] HCA 8
Mount Bruce Mining v Wright Prospecting (2015) 356 CLR 104
Orr v Cobar Management Pty limited (2020) 103 NSWLR 36; [2020] NSWCCA 220
Resource Pacific Pty Ltd v Wilkinson [2013] NSWCA 33
Secretary, Department of Family and Community Services v Smith (2017) 95 NSWLR 597; [2017] NSWCA 206
Unique Commercial Group Pty Ltd v Cusumano [2024] NSWCATAP 204
Wright v Lend Lease Building Pty Ltd Intercon Engineering Pty Ltd v Lend Lease Building Pty Ltd [2104] NSWCA 463
The proceedings before the Tribunal at first instance and the decision
71. In this case, the result is that the builder is only able to claim its incurred cost of the work plus an allowance of 15%. However, there is no evidence as to what is that amount. As it is agreed that the owner paid a total of $153,880 to the builder, the absence of that evidence means that it is not known what amount, if any, is now owed to the builder since it is not known what the actual cost plus 15% exceeded $153,880.
72. Even if the incurred cost plus 15% of any variation due to any addition, amendment or deletion to the scope of work is proved, the position in relation to the builder's application would still be the builder has not proved the amount payable under the cost plus contract, plus any amount payable for such variations, exceeds the amount the owner has paid to the builder.
124. In the costs plus contract, the clause dealing with practical completion is clause 20. The effect of that clause may be summarised by saying that it provides two ways in which practical completion can be achieved: by the builder carrying out the work (actual practical completion) or by the conduct of the owner (deemed practical completion). On 10 August 2022 the builder issued a notice of practical completion (Annexure M).
69. The Owner did take the works and use them. See photograph attached and marked Annexure L. This photograph shows a view of the works showing the owner has placed furniture and clothing in the works, thus showing occupation by the owner.
70. The Builder notes that the Owner, in advance of inspections, has removed evidence of her occupations.
128. In her second statutory declaration (A40), the owner responded to that evidence. That evidence may be summarised in the following manner: (1) the photograph on which Mr Tsang relies was taken on 3 July 2023, well after the builders 10 August 2022 notice, (2) furniture was only moved due to painting work carried by the builder's workers, (3) that painting work was the result of a leaking roof due to the builder's work, (4) the painting work was in an existing area of the house, not the area being renovated, (5) the furniture was only moved temporarily and was moved back when the work finished. That evidence was not challenged during the cross examination of Ms Li.
129. In relation to this issue, the Tribunal does not accept the validity of the notice of practical completion for the following reasons. First, the evidence does not support actual practical completion, the builder does not allege that, and the unchallenged evidence of Mr Taylor (A1691) is to the contrary. Secondly, the movement of the furniture was only temporary. Thirdly, the movement of that furniture did constitute reoccupation of the premises by the owner. Fourthly, the movement of that furniture was for the purpose of facilitating the work, and did not hinder the work. Fifthly, the Tribunal is not satisfied that the photo upon which Mr Tsang relied was taken prior to 10 August 2022, noting that he did not given evidence as to when it was taken and the owner's evidence it was taken on 23 July 2023 was not challenged. Sixthly, as indicated earlier, the evidence of Ms Li is preferred to that of Mr Tsang. Unusually, on this issue, the self-represented owner put her case to the builder's Mr Tsang but the legally represented builder's case was not put to the owner, Ms Li.
130. Accordingly, the Tribunal does not consider practical completion was achieved. It is convenient to here note that the state of the work as at 24 August 2022 was not such as to justify the final claim for $15,000 that was made in a tax invoice by the builder on that date (A511). The final page of the quotation specified that the final payment would become payable when the work was completed, and any keys handed over. That had clearly not been achieved by 24 August 2022.
158 When cross examined, Mr Taylor provided a convincing explanation as to how the extension roof could have been built to finish at the same height as the existing roof.
159. Mr Bland accepted the first of those three aspects. As to the second, he said that was a result of the design. In relation to the third, he suggested the pitch was in the vicinity of 12° shown on the plans.
160. Mr Tsang's statutory declaration suggested a speculative explanation in support of his claim that the owner [was] responsible for the first aspect. That evidence, which took the form of asserting what the builder and its roofing contractors "would have done" did not advance the builder's case on that aspect.
161. As to the first aspect, the Tribunal considers it far more likely that the issues raised by Mr Taylor were caused by the builder and its subcontractors rather than the owner [or] her agents. Mr Bland accepted that "All damaged, scratched and dented roofing should be replaced at no expense to the owner" (A1816-1817).
162. In relation to the second aspect, the Tribunal prefers the owner's case because (1) the plans (A1669) suggest the extension roof should finish at the same height as the existing roof, and (2) the explanation of Mr Taylor as to how the outcome could be achieved was persuasive and was, once stated, not challenged.
163. When re-examine, instead of being asked to respond to Mr Taylor's explanation, Mr Bland was asked the leading question of whether the difference in finishing height was inevitable to which he said yes.
164. The third aspect created a situation where the Tribunal was left with (1) one expert saying there was a pitch of 20°, (2) another expert saying there was a pitch of 12°, (3) both experts providing supporting photos. Given that photos clearly show both measurements, the only explanation can be that the measures were taken at different locations with the result that there must be areas of the of the roof with a pitch of 20°, contrary to 12° specified in the plans.
165. Mr Taylor's estimated cost of rectification of $28,752.47 (A1672-1673, which was unchallenged, will address all three aspects. Mr Bland's estimated costs of rectification of $1049.95 (A1814), which was not accompanied by any indication of how that amount was obtained, would only cover the first aspect.
166. The Tribunal is satisfied that (1) this item involves a breach of s 18B(1)A(a) of the HB A and (2) the amount allowed for rectification should be $28,752.47.
(1) A question of law should be articulated with precision;
(2) Absent leave to appeal, the question of law is the subject of the appeal;
(3) A question of law means a "pure question of law" which is not dependent on facts not found and is not dependent on the answer to the question;
(4) A party contending that a question of law was wrongly decided must identify the question in abstract terms;
(5) A mixed question of fact and law is not a question of law, and a question of law must not be hypothetical or arid;
(6) A question of law must be capable of affecting orders the subject of the appeal, not purely the reasons; and
(7) There may be disclosed an error of law but this of itself does not necessarily raise a question of law.
(1) Denial of procedural fairness (Prendergast at [13](4)); FVA v Commissioner for Police, NSW Police Force [2024] NSWCATAP 127 at [83]- [84]).
(2) A failure to exercise jurisdiction, which includes the failure to consider and address a material issue raised by a party in the proceedings that is within the jurisdiction of the Tribunal to determine (Dranichnikov v Minister for Immigration and Migration Affairs [2003] HCA 26; Alexandria Landfill Pty Ltd v Transport for NSW (2020) 103 NSWLR 479; [2020] NSWCA 165 at [8]- [12] and [413]). This category of error may also constitute a failure to accord procedural fairness.
(3) Applying the wrong legal principle which materially affected the outcome (Bimson, Roads & Maritime Services v Damorange Pty Ltd [2014] NSWSC 734 at [38]- [53]).
(4) No evidence to support a factual finding (Kostas v HIA Insurance Services Pty Ltd (2010) 241 CLR 390; [2010] HCA 23 at [91]).
(5) An error in the exercise of a statutory discretion in the limited circumstances outlined in House v The King [1936] HCA 40; (1936) 55 CLR 499 (House v King), as explained in Hannaford v Commonwealth Bank of Australia [2014] NSWCA 297 at [14].
To the extent that there is a fact/law dichotomy, the facts which are not to be reviewed by the appeal court dealing with a question of law are the facts relevant to the matter in dispute. There is a categorical distinction between the Facts in Dispute (what part of the building was completed?) and facts relating to the composition or conduct of the Tribunal."
Only if the decision is attended with sufficient doubt to warrant its reconsideration on appeal will leave be granted. Ordinarily, it is only appropriate to grant leave where there is an issue of principle, a question of general public importance, or an injustice which is reasonably clear, in the sense of going beyond what is merely arguable. It is well established that it is not sufficient merely to show that the trial judge was arguably wrong." (Citations omitted)
"... more is required than identification of error on the part of the trial judge, even if it can be said that the error is reasonably clear. Generally, the court will also need to be satisfied that there is a matter of some public importance engaged and that the costs of further litigation are not disproportionate to the amount in issue. Further, it should be established that, to leave any putative error uncorrected, would give rise to a substantial miscarriage of justice."
(Citation omitted)
(a) the decision of the Tribunal under appeal was not fair and equitable; or
(b) the decision of the Tribunal under appeal was against the weight of evidence; or
(c) significant new evidence has arisen (being evidence that was not reasonably available at the time the proceedings under appeal were being dealt with).
... there was a "significant possibility" or a "chance which was fairly open" that a different and more favourable result would have been achieved for the owners corporation had the relevant circumstance in para (a) or (b) not occurred or if the fresh evidence under para (c) had been before the Tribunal at first instance.
Ground 1: Tribunal misconstrued the contractual provision on Practical Completion
20. Practical Completion
(a) Practical completion is that stage when:
(i) the works are complete except for minor omissions and defects which do not prevent the works from being reasonably fit for their intended use; or
(ii) where as a special condition of the contract identifies a special purpose or result to be achieved by reason of the works is relevant, the purpose or result stated therein being achieved subject to an exception for minor omissions and defects which do not prevent the reasonable achievement of the specific outcome, if any listed as a special condition in Schedule 4.
(b) For the purposes of this clause the works that need to be completed to achieve Practical Completion do not include
(i) the results of any labour or materials which are to be or were supplied or fixed by the Owner or work done or to be done by the Owner; or
(ii) the provision of any certificates required to obtain an occupation certificate unless the Builder is the party who is to obtain the occupation certificate.
In this contract and unless stated otherwise as a special condition it is not the Builder's obligation to obtain an occupation certificate.
(c) When in the opinion of the Builder the works have reached Practical Completion, the Builder is to give to the Owner notice of this in writing.
(d) If the Owner disputes that Practical Completion has been reached then no later than five (5) days after the service of notice of Practical Completion the Owner must give to the Builder a written notice, of those things (if any) required by this contract to be done to achieve Practical Completion. The Builder is to as soon as possible do all those things necessary for practical completion and give to the Owner notice in writing on completion of such things.
(e) In the event of the Owner not complying with the provisions of Sub-Clause 20(d), the works will be deemed to have reached Practical Completion.
Occupation or use will amount to Practical Completion
(f)
(i) Should the Owner or any tenant or their employees or agents take possession of the works or any part of the works without the written agreement of the Builder, the date of Practical Completion will be the date possession is taken, unless Practical Completion has already been reached.
(ii) Without limiting the generality of this clause possession being taken will be established by any or all of such things as placement of furniture, use already part of works, denial or access of the Builder to the works or work site or action by the Owner or their agent which prevents the Builder undertaking the work.
Owner must Insure
(g) The works are at the risk of the Owner in all respects upon Practical Completion or from the date possession is taken in the circumstances referred to in Clause 20(f). The Owner will be solely responsible for insurance coverage of the works in either of these events.
21. Payment on Practical Completion
(a) Upon Practical Completion being achieved, the Builder is to receive any other monies which are payable in connection with the works. The Builder is to provide a claim for such work to the Owner. The claim is to comply with Clause 17 and Clause 18.
(b) The amount due under this clause must be paid to the Builder within the period specified in Schedule 1 Part C item (b).
(c) Should the Builder not receive from the Owner any payment or part of any payment on or before the due date then the Builder is entitled to interest at the rate specified in Schedule 2 item (d).
Outline of initial written submissions of Domson Construction
(a) the work involved constructing an extension to an existing house;
(b) at some stage, there was a leak in the roof which required painting work to be done in an existing part of the house;
(c) while painting work was done, Ms Li moved furniture into the extension;
(d) however, that movement was on a temporary basis and was removed to the existing part of the house after the painting was completed.
... Secondly, the movement of the furniture was only temporary. Thirdly, the movement of that furniture did (not) constitute reoccupation of the premises by the owner. Fourthly, the movement of that furniture was for the purpose of facilitating the work, and did not hinder the work....
As corrected, refer [29] above.
(1) Because cl 20(f)(ii) is a deeming clause, satisfaction of the terms of that clause is taken to amount to practical completion for the purposes of the building contract, even if the contextual facts or the circumstances underlying the satisfaction of those terms does not otherwise support either the general terms for the definition of practical completion as per cl 20(a) or even the concept of taking possession for the purposes of cl 20(f)(i).
(2) The language of cl 20(f)(ii) is relatively clear in the context of a deeming provision. The placement of furniture is a simple term. It does not appear to involve any temporal element. Accordingly, the imposition of the qualification of 'temporary' made by the Tribunal in its decision, is not justified and is in error.
(3) Clause 20(f)(ii) makes no reference to purpose and arguably the fact that the placement of furniture is for one purpose rather than another makes no difference. The fact that the furniture was placed in the work area appears to be the only significant issue for the purposes of cl 20(f)(ii).
(4) This error does not involve any challenge to a finding of fact. The Tribunal found that Ms Li placed furniture in the work site but went on to say this did not matter because of its findings as to the temporary nature of the placement and the purpose of the placement, which Domson Construction submits are irrelevant for the purposes of the construction of the deeming provision.
Outline of the initial written submissions of Ms Li
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. That approach is not unfamiliar. As reaffirmed, it will require consideration of the language used by the parties, the surrounding circumstances known to them and the commercial purpose or objects to be secured by the contract. Appreciation of the commercial purpose or objects is facilitated by an understanding "of the genesis of the transaction, the background, the context [and] the market in which the parties are operating". As Arden LJ observed in Re Golden Key Ltd, unless a contrary intention is indicated, a court is entitled to approach the task of giving a commercial contract a businesslike interpretation on the assumption "that the parties ... intended to produce a commercial result". A commercial contract is to be construed so as to avoid it "making commercial nonsense or working commercial inconvenience".
Endnote citations omitted.
The works are complete except for minor omissions and effects which do not prevent the works from being reasonably fit for their intended use.
Oral submissions of Domson Construction - new grounds?
41. The appellants also referred to the decision of this Court in Mainteck Services Pty Limited v Stein Heurtney SA [2014] NSWCA 184; 310 ALR 113 where Leeming JA (Ward and Emmett JJA agreeing) stated that two conditions must be satisfied in order to supply, omit, or correct the words in a contract. First, that the literal meaning of the contractual words is an absurdity and, secondly, that it is self-evident what the objective intention is to be taken to have been: see at [117], approving this Court's decision in National Australia Bank Ltd v Clowes [2013] NSWCA 179; 8 BFRA 600, where this Court stated, at [34]:
"Where both those elements are present ... ordinary processes of contractual construction displace an absurd literal meaning by a meaningful legal meaning."
Further written submissions of Domson Construction
These questions may be addressed by applying the usual principles of contractual construction. It is far from clear that the provisions of the contract, given their natural and ordinary meaning, reveal any true ambiguity, but in any event the preferred construction accords with the intention which may be derived from the parties' knowledge as to the surrounding circumstances and the commercial purpose of the contact.
Accordingly, regardless of the serious consequences of concluding that a court is the only body with the power conclusively to determine each of the multiple questions to be addressed in deciding whether practical completion has been reached, the structure and language of the contract is entirely consistent with the proposition that the conclusive event is the issuing of a certificate of practical completion, which must depend upon a contemporaneous opinion of the superintendent.
[emphasis added]
3A Whether, further and in the alternative. the Tribunal erred in its construction of clauses 20(a) to 20(f) inclusive, which led to uncertainty and a meaning contrary to the natural and ordinary meaning of the clauses.
Particulars
a) In making its findings with respect to clause 20(f) of the Contract at Decision [129 & 130]. the Tribunal should have correctly considered and applied the entirety of clauses 20(a) to 20(f) of the Contract, and specifically:
a. The Appellant accepts that the references in the Decision [at 125] are in error and should be to clause 20 of the Contract (not clause 22).
b. The evidence of the Applicant at paragraphs 68 to 71 of the statutory declaration of Dominic declared 11 December 2023 that use and deemed practical completion had occurred under clause 20(f) (noting particular a) above) of the Contract;
c. The evidence of the Respondent at paragraphs 6 to 13 in her statutory declaration declared 7 February 2024 that she in fact used the relevant parts of the building, thus conceding the pre-requisite to clause 20(f) of the Contract: and
d. The:
i. cross-examination evidence adduced by the Respondent from Mr Tsang at Decision [127] that the Appellant did not accept the furniture was there on a temporary basis: and
ii. Appellant's evidence at paragraph 71 and Annexure M of his statutory declaration declared 11 December 2023 he gave evidence that the Appellant claimed practical completion under clause 20 of the Contract (which notice presumes compliance with all of clause 20(a) to 20(f) of the Contract inclusive).
b) The finding at [129 & 130] and the failure to consider and apply those items referred to immediately above, led to an erroneous finding at Decision [130] that practical completion had not occurred, when in fact it had, and erroneous refusal of the Appellant's claim (and erroneous acceptance of the Respondent's claim) at Decision [191].
Submissions about the determination of the appeal
Leave to further amend the Amended Grounds of Appeal
Did the Tribunal err in construing cl 20(f) of the building contract and was there error?
I was not using the part of the building that Mr Tsang says I was for any other purpose. In fact, I removed the furniture and put it back into the already existing parts of the building as soon as the painting was over. I have not occupied that extended area since. It was also not convenient for us to use the extended area for dining because it is far from the kitchen.
69. The Owner did take the works and use them. See photograph attached and marked Annexure L. This photograph shows a view of the works showing the owner has placed furniture and clothing in the works, this showing occupation by the owner.
70. The Builder notes that the owner in advance of inspections has removed evidence of her occupation.
Grounds 2 and 3: Consequential errors based on finding about Practical Completion
Grounds 4 and 6: Failure to exercise jurisdiction by overlooking material in Joint Experts' Report
The third aspect created a situation where the Tribunal was left with (1) one expert saying there was a pitch of 20°, (2) another expert saying there was a pitch of 12°and (3) both expects providing supporting photos. Given that photos clearly show both measurements, the only explanation can be that the measurements were taken at different locations with the result that there must be areas of the roof with the pitch of 20°, contrary to 12° specified in the plans.
I acknowledge that the roof pitch of the extension is close to the 12° pitch as stated on the plans.
Those questions of law should be, in our opinion, what are sometimes described as "pure questions of law". They should not draw the Court of Criminal Appeal into questions of fact. Moreover, they must be questions whose character as a question of law can be recognised on the face of the question, and not depend upon the answer given to the question. This does not include a question which may ultimately disclose an error of law depending on an analysis of the facts but where this cannot be known without scrutiny of the facts. The construction accords with the cases we have referred to at [48] and [70] above.
Their Honour's exclusion at [109] of "a question which may ultimately disclose an error of law depending on an analysis of the facts but where this cannot be known without scrutiny of the facts" is a reminder of one source of complication in this area of discourse, being that some questions of law, properly framed and understood as such, will require an examination of the facts. However, in my respectful opinion, this latter category is generally and necessarily confined to submissions of jurisdictional error on grounds such as 'Wednesbury unreasonableness' or constructive failure to exercise jurisdiction.
6. The premise underlying a "constructive" failure to exercise jurisdiction is that there has been an apparent exercise of the jurisdiction of the court, but one that has failed in a way which can only be teased out by reference to the underlying issues and the materials presented to the court. It may then be demonstrated that a material issue presented for determination has not been resolved. By contrast, a failure to give adequate reasons implies that the relevant issues have been identified, addressed and resolved, but the reasons for reaching the conclusion have not been adequately expressed.
7. Despite the conceptual difference between the two complaints, they are related in a practical way. Because there is no means of interrogating a judge as to his or her intellectual processes, evidence that issues were not addressed can usually only be demonstrated by reference to the reasons. Thus, on the assumption that the judge addressed in the reasons all material matters, the absence of reference to a particular matter may allow the inference that it was not addressed and determined.
The adoption, on an appeal limited to errors in point of law, of language derived from the supervisory jurisdiction of the court must be undertaken with caution. It is, no doubt, an error of law for the trial court to fail to exercise its constitutional function, which is to resolve a dispute presented to it by the parties by applying the law in accordance with proper procedure. In the present case, that function was almost entirely satisfied by the resolution of disputed factual issues. The term 'constructive failure to exercise jurisdiction' is used to describe a situation where the court has purported to resolve the parties' dispute but has not in fact done so. Thus, particularly with a court or Tribunal required to provide reasons for its decision, it may become apparent from those reasons that a material issue has simply not been addressed or that material evidence has been overlooked......
Grounds 5: Exercise of discretion on order for costs
(1) Leave to further amend the Amended Grounds of Appeal is granted.
(2) Leave to appeal is refused.
(3) The appeal is dismissed.
(4) The stay granted on 30 October 2024 is lifted.
(5) If a party to the appeal wishes to make an application for costs, the following directions apply:
(a) the party applying for costs (the costs applicant) must, within 14 days after the publication of this decision, give the other party (the costs respondent) and the Registry any submissions and documents the costs applicant intends to rely on in relation to the application, including on the question as to whether costs should be fixed or assessed;
(b) the costs respondent must, within 14 days after receiving the submissions and documents of the costs applicant, give the costs applicant and the Registry any submissions and documents the costs respondent intends to rely on in response to the application for costs;
(c) the costs applicant must, within 7 days after receiving the submissions and documents of the costs respondent, give the costs respondent and the Registry any additional submissions and documents the costs applicant intends to rely on in response to the costs respondent's submissions and documents;
(d) the parties are to include, in their written submissions concerning the application for costs, their submissions about whether they consider that a hearing in relation to the application can be dispensed with pursuant to s 50 of the Civil and Administrative Tribunal Act 2013 (NSW).
I hereby certify that this is a true and accurate record of the reasons for decision of the New South Wales Civil and Administrative Tribunal.
I hereby certify that this is a true and accurate record of the reasons for decision of the Civil and Administrative Tribunal of New South Wales.
Domson Construction Pty Ltd
Yanying Li [2025] NSWCATAP 178;
(2014) 215 CLR 640
(2015) 356 CLR 104
(2020) 103 NSWLR 36
(2017) 95 NSWLR 597
(2020) 103 NSWLR 479
(2010) 241 CLR 390
(1936) 55 CLR 499
(2003) 214 CLR 118