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Abela, A, Hoxley, M, McGrath, P and Goodhew, S (2013) A comparative analysis of implementation of the Energy Performance of Buildings Directive in the Mediterranean. International Journal of Law in the Built Environment, 5(03), 222-40.
Adshead, J (2009) An integrated approach to water protection and management: the European Union model. International Journal of Law in the Built Environment, 1(03), 234-43.
Agapiou, A (2015) The factors influencing mediation referral practices and barriers to its adoption: A survey of construction lawyers in England and Wales. International Journal of Law in the Built Environment, 7(03), 231-47.
Andrew, M (2011) Contract interpretation: potential for relaxing the exclusionary rule. International Journal of Law in the Built Environment, 3(03), 205–21.
Besaiso, H, Fenn, P and Emsley, M (2016) Alternative dispute resolution in Palestine: the myth and dilemma of construction mediation. International Journal of Law in the Built Environment, 8(03), 269-86.
Brand, M C and Davenport, P (2012) Adjudication in Australia: An analysis of the amendments introduced by the building and construction industry Security of Payment Amendment Act 2010 (NSW). International Journal of Law in the Built Environment, 4(03), 189-202.
Brodie, M (2010) Building information modelling: the UK legal context. International Journal of Law in the Built Environment, 2(03), 246–59.
Brown, L A (2016) The contaminated land regime and austerity. International Journal of Law in the Built Environment, 8(03), 210-25.
Brown, R (2009) Legal incoherence and the extra-constitutional law of regulatory takings: The Canadian experience. International Journal of Law in the Built Environment, 1(03), 179-93.
Calor, I and Alterman, R (2017) When enforcement fails: Comparative analysis of the legal and planning responses to non-compliant development in two advanced-economy countries. International Journal of Law in the Built Environment, 9(03), 207-39.
Charlson, J, Baldwin, R and Harrison, J (2014) Early perceptions of allowing adjudication of oral contracts. International Journal of Law in the Built Environment, 6(03), 233-49.
Connell, A and Mason, J (2015) Isn’t all loss consequential?: A review of recent case law and its relevance to contractual practices within the built environment. International Journal of Law in the Built Environment, 7(03), 176-94.
Crossley, B J (2015) Inter-organisational relationship trust repair: a ranked Delphi study with UK professionals. International Journal of Law in the Built Environment, 7(03), 195-213.
Davenport, P and Brand, M C (2013) The effectiveness of time bar clauses following the high court in decision in
- Type: Journal Article
- Keywords: Adjudication; Contract; Penalty; Time bar
- ISBN/ISSN: 1756-1450
- URL: https://doi.org/10.1108/IJLBE-12-2012-0029
- Abstract:
Purpose – In Australia, compulsory rapid adjudication under the Building and Construction Industry Security of Payment Act 1999 (NSW) (or the equivalent legislation another Australian State or Territory) is a common way that payment claims under commercial construction contracts are decided. Construction contracts often contain penalty clauses. In particular, time bar clauses have been used to impose a penalty upon claimants and are frequently raised by a respondent as a reason for withholding payment. In the recent case of Andrews v. Australia and New Zealand Banking Group [2012] HCA 30 (“the Andrews case”), decided by the high court of Australia, the court has described how Australian courts must deal with penal provisions in contracts. The purpose of this paper is to consider the effectiveness of time bar clauses in the light of the penalty doctrine enunciated in the Andrews case. Design/methodology/approach – A “black-letter” approach is adopted to analyse and explain the effectiveness of time bar clauses in the light of the penalty doctrine enunciated in the Andrews case. Findings – In the Andrews case, the high court decided that a penalty may arise where there is a stipulation in a contract in favour of a second party and upon the failure of that stipulation (the primary stipulation) there is a secondary stipulation that imposes on the first party an additional detriment to the benefit of the second party. If the second party can be compensated for the failure of the primary stipulation then to the extent that the additional detriment imposed on the first party exceeds that compensation, it is a penalty. In the context of time bar clauses, if a construction contract provides that when one party (the first party) fails, within a time prescribed by the contract, to give the other party (the second party) notice of a claim for extra remuneration or an extension of time, the consequence is that the first party forfeits an entitlement to be paid money that the party would otherwise be entitled to claim, or the first party becomes liable to pay the second party money, the penalty doctrine might apply. Originality/value – The penalty doctrine is applicable to all contracts. The analysis of the Andrews case presented in this paper may be of interest in international jurisdictions, particularly where statutory adjudication for the construction industry has been introduced or is being contemplated.
de Silva, C (2014) Educating the chartered surveyor: looking back to look forward. International Journal of Law in the Built Environment, 6(03), 250-70.
Dixon, M (2013) Title by registration or conquest: Interpreting the Land Registration Act 2002 in England and Wales. International Journal of Law in the Built Environment, 5(03), 194-206.
Ekemode, B G, Adegoke, O J and Aderibigbe, A (2017) Factors influencing land title registration practice in Osun State, Nigeria. International Journal of Law in the Built Environment, 9(03), 240-55.
Fox, J V S (2014) Incentives and limits in letters of intent: are they worth the paper they’re written on?. International Journal of Law in the Built Environment, 6(03), 214-32.
Gibbons, T N (2013) Management agreements in multi-unit housing developments: A case study in regulation and remedies. International Journal of Law in the Built Environment, 5(03), 207-21.
Hetherton, T and Charlson, J (2015) When statutes collide: potential recovery of own party adjudication costs. International Journal of Law in the Built Environment, 7(03), 214-30.
Home, R (2017) Deregulating planning control over Britain’s housing stock. International Journal of Law in the Built Environment, 9(03), 193-206.
Home, R (2012) Forced eviction and planning enforcement: the Dale Farm Gypsies. International Journal of Law in the Built Environment, 4(03), 178-88.
Joanna, P and Mike, H (2010) Use of moral theory to analyse the ethical codes of built environment professional organisations: a case study of the Royal Institution of Chartered Surveyors. International Journal of Law in the Built Environment, 2(03), 260–75.
Jorge, A (2013) The subsidiarity rule: the unjust enrichment doctrine in construction law. International Journal of Law in the Built Environment, 5(03), 253-70.
Leshinsky, R (2016) Touching on transparency in city local law making: Experiences from waking up each day in City of Melbourne, Australia. International Journal of Law in the Built Environment, 8(03), 194-209.
Mamutse, B (2016) Environmental liabilities in insolvency – an area ripe for reform?. International Journal of Law in the Built Environment, 8(03), 243-68.
Mansfield, J (2009) The service of notices by commercial property managers in England and Wales: Lessons for property and legal professionals. International Journal of Law in the Built Environment, 1(03), 244-54.
Mason, J (2009) Ethics in the construction industry: the prospects for a single professional code. International Journal of Law in the Built Environment, 1(03), 194-204.
Michael, C B and Philip, D (2011) Proposal for a “Dual Scheme” model of statutory adjudication for the Australian building and construction industry. International Journal of Law in the Built Environment, 3(03), 252–68.
Ní Fhloinn, D (2017) Liability in negligence for building defects in Ireland, England and Australia: Where statute speaks, must common law be silent?. International Journal of Law in the Built Environment, 9(03), 178-92.
Palmer, K (2012) Local authority liability in New Zealand for defective homes. International Journal of Law in the Built Environment, 4(03), 203-16.
Philip, B and Julian, B (2011) New homes and consumer rights: England and Australia compared. International Journal of Law in the Built Environment, 3(03), 269–95.
Ploeger, H and Groetelaers, D (2014) Managing multi-owned, mixed-use developments in The Netherlands: The opinion of professional managing agents. International Journal of Law in the Built Environment, 6(03), 271-85.
Raj, S, Hillig, J B, and Hughes, W P (2009) Responsiveness to change by standard-form contract drafters in the construction industry: a case study of the FIDIC White Book. International Journal of Law in the Built Environment, 1(03), 205-20.
Robert, J M (2010) The teaching of law to non-lawyers: an exploration of some curriculum design challenges. International Journal of Law in the Built Environment, 2(03), 232–45.
Ronan, C (2011) A consideration of recovery of prolongation costs in a construction context. International Journal of Law in the Built Environment, 3(03), 237–51.
Sabri, B K M, Ujang, N, Arif, A M M and Aripin, S (2017) Measures in curbing poor compliance to building control regulation among renovated terrace houses. International Journal of Law in the Built Environment, 9(03), 256-71.
Sidoli del Ceno, J (2014) Compulsory mediation: civil justice, human rights and proportionality. International Journal of Law in the Built Environment, 6(03), 286-99.
Silva, C d (2012) Health and safety: teaching law, educating for prevention. International Journal of Law in the Built Environment, 4(03), 233-46.
Susan, B (2010) Carbon reduction and commercial leases in the UK. International Journal of Law in the Built Environment, 2(03), 218–31.
Wayne Edward, L and Thomas Edward, G (2011) Cost benefit analysis approach to global claims. International Journal of Law in the Built Environment, 3(03), 222–36.
Whaley, A, McAdam, B and Crowe, P (2015) The acceleration dilemma: can English law accommodate constructive acceleration?. International Journal of Law in the Built Environment, 7(03), 248-67.
Williams, P (2012) Managing urbanisation and environmental protection in Australian cities: Approaches for integrating biodiversity and urban growth in Sydney. International Journal of Law in the Built Environment, 4(03), 217-32.
Williams, P J and Williams, A M (2016) Sustainability and planning law in Australia: achievements and challenges. International Journal of Law in the Built Environment, 8(03), 226-42.
Xiaojing, Q (2010) The impact of political forces on urban land ownership reform in transitional China. International Journal of Law in the Built Environment, 2(03), 206–17.
Yau, Y (2009) On the proposed private certification of building works in Hong Kong. International Journal of Law in the Built Environment, 1(03), 221-33.