Projects & Construction Monthly – January Edition

Welcome to 2025 and the January edition of Projects & Construction Monthly.

This edition addresses:

1. Recent Construction News;
2. Trust Account Framework – Upcoming Phases;
3. LPC Lawyers’ recently completed ‘Case by Case’ series;
4. LPC Lawyers’ recently completed ‘Superman’ series; and
5. Opportunities to join the LPC Lawyers’ team.

Recent Construction News

Tarong West Wind Farm

Located within the South Burnett Regional Council area, Stanwell Corporation’s Tarong West Wind Farm is the largest publicly owned wind farm in Australia. The project will feature 97 x 4.5 MW Vestas turbines, each up to 280m in height. Not only will this produce enough clean energy to power the equivalent of 230,000 homes but will also create approximately 200 construction jobs and 15 ongoing operational jobs.

The Tarong West Wind Farm received development approval in July 2024, with construction expected to commence from 2025. Construction is anticipated to take 30 months. For more information on the Tarong West Wind Farm, see here.

Pimpama Station Construction Update

Last year, significant progress was made on Pimpama Station, including installing the pedestrian overpass and stairs, construction of station platforms, drainage and utility works, completing earthworks for the new carpark and commencement of fit-out works.

Major construction activities will continue throughout January 2025, such as installing platform services, fencing, screens and handrails, and ongoing station building and plaza construction activities. For more detailed construction updates on Pimpama Station, see here.

Trust Account Framework – Upcoming Phases

The Building Industry Fairness (Security of Payment) Act 2017 establishes a trust account framework (the Framework) to protect progress payment and retention amounts for industry contractors and subcontractors. Currently, the Framework applies to eligible Queensland Government contracts of $1 million or more and private sector, local government, statutory authority and government-owned corporation contracts of $10 million or more.

From 1 March 2025, the Framework will apply to contracts valued at $3 million or more, involving state government authorities, local government, and private entities and individuals. By 1 October 2025, it will extend to all contracting parties and apply to contracts valued at $1 million or more.

The rollout of the trust account framework between 1 March 2021 and 1 October 2025 ensures that industry has time to adapt and prepare for changes. By allowing it to be delivered in phases, the Framework is progressively expanding over time to capture more contracts and contractors.

LPC Lawyers’ ‘Case by Case’ Series  

As the construction landscape evolves, landmark court decisions serve as pivotal points, influencing everything from contract disputes to industry regulations. LPC Lawyers’ recently completed three-part series examines the influence and implications of some of these cases on the construction industry.

Part 1 – Lessons from Tesseract

Part 1 explored the case of Tesseract International Pty Ltd v Pascale Construction Pty Ltd [2024] HCA 24, in which the High Court handed down a significant judgment in finding that the proportionate liability laws do apply to arbitrations. Read the full article here.

Part 2 – Paladin Projects Pty Ltd v Visie Three Pty Ltd & Ors

Part 2 focused on the case of Paladin Projects Pty Ltd v Visie Three Pty Ltd & Ors (No 2) [2024] QSC 244, which highlighted the importance of evaluating the making and rejection of settlement offers (i.e., Calderbank offers). Read the full article here.

Part 3 – Chevron Park Pty Ltd v Groupline Constructions Pty Ltd  

Part 3 examined the decision of Chevron Park Pty Ltd v Groupline Constructions Pty Ltd, which emphasised the meaning of section 88 of the Building Industry Fairness (Security of Payment) Act 2017 (Qld). Read the full article here.

 

LPC Lawyers’ ‘Superman’ Series  

LPC Lawyers’ recently completed three-part series explores what a superintendent is and how they are appointed, the roles and responsibilities of a superintendent, and the superintendent’s duty of impartiality when assessing claims and the consequences of breaching such duty.

Part 1 – Understanding the Role of Superintendents in Managing Commercial Projects

Part 1 broadly explored the definition of a superintendent, the role of the principal’s representative or agent, appointment of a superintendent, and the superintendent’s representative. Read the full article here.

Part 2 – Obligations of a Superintendent as Independent Certifier and Agent for the Principal

Part 2 delved into the key duties of superintendents as independent certifiers, their responsibilities when acting as agent for the principal, why it is important to understand the distinction between their two roles, and best practices to navigate their dual role effectively. Read the full article here.

Part 3 – Duty of Impartiality

Part 3 explored the superintendent’s duty of impartiality in exercising its functions under the contract, who must enforce the compliance of such, and what the consequences are for breaching that duty. Read the full article here.

LPC Lawyers’ Continued Expansion

LPC Lawyers is looking to hire with opportunities for growth in our expanding practice.

Litigation Lawyers (1-3 years PAE)

Working closely with an ex-top tier partner, this role is ideal for a candidate who is highly motivated and has experience in drafting correspondence, simple pleadings, briefs for Counsel, and some client advisory work.

For more information about our current opportunities visit our website here or to apply, please email your resume and cover letter to Manaia at [email protected].