ALLIED CONSTRUCTIONS PTY LTD V. NOVACOAL AUSTRALIA PTY LTD (1991)
25 NSWLR 54
Supreme Court of New South Wales – 15 November 1991
Novacoal retained Allied Constructions to build a concrete lined shaft. The parties used an AS2124-1984 contract.
When the contract was finalised some qualifications were made by Allied about the total inflow of water. If the inflow of water exceeded 6 litres a second then Allied and Novacoal were to negotiate for an additional payment.
The directions made by the Superintendent were not to the liking of Allied and they issued proceedings claiming payment for a latent condition and for the additional work.
Novacoal issued an application under section 52 of the Commercial Arbitration Act (“the Act”) seeking an order that the proceeding be stayed.
Was General Condition 49.1 of AS2124-1984 an arbitration agreement for the purposes of the Act?