NOVAWEST CONTRACTING V TARA NOMINEES (1998) 5374 OF 98
Supreme Court of Victoria – 30 October 1998
Novawest was the contractor appointed by Tara Nominees to conduct building work in Melbourne. The contract between the parties was an AS2124-1992 contract and an independent superintendent was appointed by Tara Nominees.
Novawest submitted progress claims to the superintendent and the superintendent determined that a progress payment should be made to Novawest. Tara Nominees refused to pay the progress payments and claimed
that it had a claim for faulty work by Novawest.
Novawest sued for the debt owing under two progress payment certificates and obtained summary judgment against Tara Nominees. Tara Nominees made a claim for damages against Novawest and appealed the summary judgment decision.
Did the AS2124-1992 contract force Tara Nominees to pay the amounts due under the progress payment certificates issued by the superintendent despite the claims for faulty work.