[2025] NSWCATAP 238
General information, not legal advice.
NCAT Appeal Panel
2025-09-29
D A C Robertson, Principal MemberR C Titterton OAM, Senior, Member
Original judgment source is linked above.
(1) Proceedings 2022/00449838 (formerly HB 22/02862) and 2023/00384873 (formerly HB 23/32633), commenced by the Homeowners; and
(2) Proceedings 2022/00428428 (formerly HB 22/19880) and 2023/00382670 (formerly HB 23/34923), commenced by the Builder.
(1) Determined, at [93], that the contract governing the building work was a contract executed on 18 July 2019[1] as amended by two contracts executed on 20 June 2020;
(2) Determined, at [126], that the Builder had not completed stage 9 of the works, that the Builder had repudiated the contract, and that the Homeowners had validly terminated the contract;
(3) Granted the Homeowners leave to re-open to seek an order for the provision of identified certificates which the Builder said he could and would provide subject to the determination of whether money was owed by the Homeowners to him, but did not otherwise grant leave to re-open their first application;
(4) In relation to the Homeowners' first application, ordered the Builder to pay the Homeowners damages of $43,952.59;
(5) In relation to the Homeowners' second application, ordered the Builder to provide the identified compliance certificates, but otherwise dismissed the application;
(6) Dismissed the Builder's first and second applications.
(1) whether there has been a failure to provide proper reasons;
(2) whether the Tribunal identified the wrong issue or asked the wrong question;
(3) whether a wrong principle of law had been applied;
(4) whether there was a failure to afford procedural fairness;
(5) whether the Tribunal failed to take into account relevant (that is, mandatory) considerations;
(6) whether the Tribunal took into account an irrelevant consideration;
(7) whether there was no evidence to support a finding of fact;
(8) whether the decision was so unreasonable that no reasonable decision-maker would make it.
32 To the above list [referring to the list in Prendergast extracted above] might be added the following (some of which are nuanced aspects of the categories in Prendergast):
(1) Whether the Tribunal drew inferences that were not available from the facts as found (an extension of item 7 [of Prendergast]) ...
(2) Whether the construction of a statute or contract arrived at by the Tribunal at first instance was wrong in some identified way: ...
(3) Whether the Tribunal's decision was vitiated by bias, or a reasonable apprehension of bias, relates to and intersects with the fair hearing rule, and may encompass or be related to the procedural fairness question: ...
(4) Whether the Tribunal failed to respond to substantial, clearly articulated arguments based on established facts which may constitute a failure to accord natural justice, that is, procedural unfairness. Alternatively, it may also constitute a constructive failure to exercise jurisdiction: ...
(5) Whether the facts as found necessarily satisfied the statute or necessarily did not: ...
(1) the decision of the Tribunal under appeal was not fair and equitable; or
(2) the decision of the Tribunal under appeal was against the weight of evidence; or
(3) significant new evidence has arisen (being evidence that was not reasonably available at the time the proceedings under appeal were being dealt with).
Ordinarily it is appropriate to grant leave to appeal only in matters that involve:
(a) issues of principle;
(b) questions of public importance or matters of administration or policy which might have general application; or
(c) an injustice which is reasonably clear, in the sense of going beyond merely what is arguable, or an error that is plain and readily apparent which is central to the Tribunal's decision and not merely peripheral, so that it would be unjust to allow the finding to stand;
(d) a factual error that was unreasonably arrived at and clearly mistaken; or
(e) the Tribunal having gone about the fact finding process in such an unorthodox manner or in such a way that it was likely to produce an unfair result so that it would be in the interests of justice for it to be reviewed.
The Decision is not fair based on imagination.
Nor based on the Truth element.
I need Justice Decision.
(1) A letter from the Homeowners' solicitors to the Builder, dated 1 June 2022. The letter does not appear to have any relevance to the appeal.
(2) The Builder's invoices in respect of stage 9 of the contract works:
(a) Invoice 0010, for "Tiling-flooring-paint-fitting" dated 9 January 2022, in the sum of $65,000;
(b) Invoice 0011-1 dated 20 July 2022, being for the amount of invoice 0010 and interest on that amount, in the total sum of $71,500.
(3) A letter from the Builder to the Homeowners dated 9 May 2022 in which, for reasons stated, the Builder requests the Homeowners to withdraw their application.
1. The homeowners did not pay for the work I have done according to the contract, this is a breach of contract by the homeowners.
2. I produced the invoice of the completed works of the building 9/01/2022 before the homeowners terminated the contract 07/04/2022- (page 3, 4). If they terminated the contract, they need to pay for the outstanding work completed
3. I produced the invoice of the completed works of the building before the homeowners apply to the tribunal.
4. For many times I convince the father of the homeowners Mr Van Don Nguyen to pay me part of the invoice for me to have the fund to complete the job in 6 weeks, but they refused to pay. (page 8(13))
5. During this construction period the price of the materials has increased skyrocketing, but I have not charge any extra money even a single dollar.
6. I thank you Senior Member Mr Woods, did not consider of their claim on the tiles they chose and the rent they claimed. I believe, Senior Member Mr Woods did not consider that the homeowners are in breach of the contract.
7. The construction for this building fall into the COVID-19 pandemic, there were 3 months lock up period, there were distance separation, there were restrict travel for whatever the career you are in Australia, I believe this should consider if you are decision maker.
8. The homeowners breach of the contract, I will say that all the time because they did not pay for my works.
9. The evidence I provided though out the hearing are 100% correct.
10. I believe justice to be fair, I believe, the appeal panel will overrule the order 2022/00449838 and 2023/00384873
11. I am a religious man, Buddha is my teacher, Buddha is inside me, I cannot do anything wrong to the humankind, I don't tell lie to people, I only help people, I am not angry to people that do the wrong thing to me, I don't start legal action to anyone, I believe in next life, I praise every day for our world to be saved.
12. I believe justice to be fair, I believe, the appeal panel will order the homeowners to pay for our works that have been done according to the contract, pay the invoice $71,500.00 (page 5).
13. I will come back to complete the remaining patching job and obtain the OC certificate of the building, the homeowners will pay the remaining of the contract $9,750.00.
14. There is a discount of $10,000.00 will remain.
1. The invoices page 209-229 from the labourers and the materials for the project Where I spent $253,360.00 up to the stage for the progress claim No.09, according to the contract at this stage the total amount is $71,500.00(late payment), I did accept my lost for the project. I want to finish the construction of their house, but they don't want to pay (email page 24). (see contract conditions Clause 10).
2. Whether it is partially completed or partly complete, the homeowners did not pay anything from the hinge of the door to the mixer or toilet or the shower screen or the floor tiles or the labour, they did not pay for anything, these materials have not been paid for by the homeowners, these are not belong to them until they pay for it, I don't understand why Mr. Woods ordered me to pay the homeowners an extra of $43,952.59 for them together I have to provide all the certificates that was not involved in the contract, and I am not qualify to provide these certificates.
3. The homeowners breach of the contract. they did not pay according to the contract. (see Clause 8).
4. The homeowners terminate the contract by themselves to get away from paying for my work. That is in the common sense in human kind.
5. The homeowners put me in a situation that I must depend against the decision from Mr. Woods. I believe people make mistake or mis judgment in their decision. Mr. Woods may be one of them, please look at the contract, the contract conditions and though out the contract agreed with the homeowner. The decision from Mr. Woods needed to be based on the contract for what items I need to provide to the homeowners. For what ever the contract date signed, the condition Clause 6 explained, I need to obtain the approval from all the authorities before I start the construction, Clause 7 of the contract page 105 more description.
6. (13) the reason workmanship manner as described reasoning by the member is untruth, because this building is under my eligibility home warranty, if I don't do the job properly, the insurance company deduct point from my eligibility credit and if someone going to anything inside the building, my home warranty insurance will not cover for the work.
7. I believe in Law and Order, I believe there is common sense in the human society.
8. I am qualified to do the construction work here in Australia not by luck but with my education and my knowledge, I Honor my words, I see everyone equal, NCAT need to reverse the order from Mr. Woods, I requested the homes owners to pay for my work, thank you.
CONCLUSION
13. The homeowners have no evidence to prove that I, the builder did anything wrong during the construction of their building. Other than relying on Senior Woods's statement.
14. The error from Senior Woods's statement list above from 5-11 will be enough for the appeal panel to overrule the decision cases 2022/00449838 and 2023/00384873 from Senior Member Mr Woods.
15. The homeowners must pay the total cost of the subcontractor $253,360.00.
(1) The Tribunal made a finding that the Builder was not entitled under the contract to be paid for Stage 9 until Stage 9 was completed and that the Builder had not completed Stage 9, and the Builder has not identified any error in the Tribunal's reasoning;
(2) The Tribunal found that the Builder was also not entitled to be paid for part of an incomplete Stage on a quantum meruit basis; again the Builder has not identified any error in the Tribunal's reasoning;
(3) While the Tribunal referred to the Builder's submission that prices of materials had increased since the construction period, this was irrelevant because the contract was a fixed price contract;
(4) The Tribunal considered, and rejected, the Homeowners' claim that the tiles that were installed were in breach of contract;
(5) The Tribunal also considered, and rejected, the Homeowners' claim for lost rent;
(6) The Tribunal considered the impact of the COVID lockdown and the Builder has not identified any error in the Tribunal's reasoning.
'I will come back to complete the remaining patching job and obtain the OC certificate of the building, the homeowners will pay the remaining of the contract $9,750.00',
6 The Builder does not identify any question of law in either his Notice of Appeal or his Submissions. Nor does the Builder identify with any precision any other grounds for appeal or provide any proper basis for the grant of leave in either his Notice of Appeal or his Submissions.
7 At its highest, the Builder's appeal seems no more than a complaint that the Tribunal erred by failing to order the Owners to pay for work that he had completed prior to termination.
8 The Builder's complaint reflects a misunderstanding of the decision. In fact, for the reasons below, the Builder did receive a credit for the value of the work that he had completed.
9 It follows that there is no error in the Tribunal's decision. The appeal should be dismissed with costs.
Builder's claim for payment for work done
18. It was common ground that the Builder had been paid for all work done prior to Stage 9 R|97]-[98].[2] It was also common ground that when the Builder issued invoice 10 for $65,000 for stage 9, the stage 9 work had not been completed - indeed, the Builder's evidence was that he needed money to pay contractors to get them back on site to complete the stage 9 works R[101], [121]. The Tribunal found that the contract did not require the Owners to pay for a stage until the stage had been completed R[122], [125]. That finding is not challenged, nor could it be.
19. Having found that the Owners were entitled to terminate the contract for the Builder's failure to complete stage 9 R[126], the Tribunal went on to calculate damages to put the Owners in the position they would have been had the contract been performed, which it identified as the cost to remedy the defective work and complete the incomplete contract work, less the unpaid balance of the contract price R[127]. That is an entirely orthodox mode to assess damages in the case of lawful termination by an owner of a building contract that has been part performed.
20. The effect of that assessment is that work already completed by the Builder does not need to be carried out by another builder, so is not included in the calculation of cost to complete. To the extent the Builder would have, but has not, been paid for completing that work under the contract, then that amount forms part of the unpaid contract price that is deducted from the amount the Owners will have to pay another builder to complete the contract works in order to calculate damages. In short, the Builder received a credit for the value of the work that he had completed.
21 Having carried out an extensive and careful review of the evidence concerning costs to rectify defective work and complete incomplete work at R[146]-|243], none of which is challenged, the Tribunal carried out the damages calculation at R[244] in accordance with the mode it had foreshadowed at R[127]. The Tribunal correctly rejected the Builder's submission, apparently renewed on appeal, that he was entitled to be paid the value of work performed, as "misconceived", relying on Mann v Paterson Constructions Pty Ltd [2019] HCA [62] to [63] and [100] to [105].
22 In those circumstances there is no error in the Tribunal's decision that the Owners were entitled to an order that the Builder pay it damages of $43,952.59.
121 In summary, the Builder's evidence was that he accepts that the stage 9 work had not been completed, but he needed money to pay contractors because the costs to him had increased and he needed money to get contractors back to finish the works to complete the stage 9 / invoice 10 work.
This statement from Senior Woods is untrue. The work for this stage was already done, please see invoices from the subcontractors and the photos (page 127-166). I need the money after the work was completed and the subcontractors were demanding they receive payment for their work. It is expected that payment should be issued for the work we completed and it is not reasonable for the work not to be paid.
In the last few weeks the weather was terrible even we do internal work, I will complete on the 16 December and booking for the final inspection on the 17 of December. I need you to forward the progress claim that I sent to sometimes ago, now, I need to have the fund to complete the last part of the construction. We have completed the flooring and the fitting in the bathrooms, the handrail for the stairs, I cannot use glass because it is very heavy the stair cannot hold the glass up. I can do glass balcony for you, but you need to pay extra cost, thanks.
117 In his second statement dated 28 July 2022, Mr Nicholas Nguyen went into some detail identifying stage 9 works that had not been completed. That included unfinished gyprocking and painting work, unfinished kitchen splashback and cabinet installation, and light fittings not being installed. The evidence is supported by photos. The Builder does not dispute that the photos depict the state of works at the Property.
118 The Builder's evidence included that the Homeowners failed to pay invoice 10 for $65,000.00, which money he said he required to enable the work to be completed, because he needed to pay workers and subcontractors. He said that he even asked that $35,000.00 of the invoice be paid, and that the painting was up to 90 per cent complete and the floor tiles and the bathroom tiles were complete. He identified the work that he said was required to complete the contract work.
119 In cross examination, the Builder gave evidence to the effect that he would seek payment when a stage was 80 to 90% complete so that he could commence preparation of the next stage, and that he sent the progress claim 9 / invoice 10 claim, not because he believed that stage 9 was complete, but because he needed money. ...
120 Mr Capaldi gave evidence that in his opinion, the stage 9 works not been completed.
121 In summary, the Builder's evidence was that he accepts that the stage 9 work had not been completed, but he needed money to pay contractors because the costs to him had increased and he needed money to get contractors back to finish the works to complete the stage 9/ invoice 10 work.
122 Although I have some sympathy for the position of the Builder, the fact is that the Contract required the works to be completed to the relevant stage before payment was required
123 Having regard to evidence by Mr Nicholas Nguyen supported by the photos, I am satisfied that the work required to reach stage 9 had not been completed.
124 The Homeowner's evidence and assertions that the stage 9 works had not been completed is corroborated by Mr Capaldi and admissions by the Builder to the effect that it was 80 to 90 per cent complete but that he needed money to continue.
125 It is clear from each of the contracts that the entitlement to payment for a stage arose upon completion of a stage and stage 9 had clearly not been completed. It followed that the Builder was not entitled to demand payment of invoice 10 for the stage 9 works and was not entitled to suspend work because of its non-payment.
(emphasis added)
(1) Leave to appeal is refused.
(2) The appeal is dismissed.
(3) Subject to order (4) below, the appellant is to pay the respondents' costs of the appeal as agreed or assessed.
(4) The appellant may file and serve upon the respondents submissions, of no more than three pages, seeking a different order, or that there be no order, in relation to the costs of the appeal, within 14 days after the publication of this decision. If the appellant files submissions in accordance with this order, order (3) above will cease to have effect.
(5) If the appellant files submissions in accordance with order (4) above, the respondents may file and serve upon the appellant submissions in response, of no more than three pages, within 28 days after the publication of this decision.
(6) The appellant may file and serve upon the respondent submissions in reply, of no more than two pages, within 35 days of the publication of this decision.
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.
[1] The decision refers to the contract as "the 18 October 2019 Fair Trading Contract" but it is clear that that is an error as no such contract was executed. A Fair Trading standard form contract was executed on 18 July 2019.
[2] R (presumably an abbreviation of Reasons) is a reference to the Primary Decision.
Nguyen
Nguyen [2025] NSWCATAP 238;