King & Wood Mallesons

Asia-Pacific 100 position: 3

BCIPA does not apply to works on a mining lease

A Queensland Supreme Court judgment delivered on 25 June 2013 has found that the Building and Construction Industry Payments Act 2004 (Qld) (BCIPA) does not apply to work carried out on land the subject of a mining lease.

The first respondent, J&D Rigging Pty Ltd, was appointed by the current holder of a mining lease as operator of the Skardon River Mine. The appointment allowed J&D to dismantle the mining plant installed on the land the subject of the mining leases. The mining plant consisted of a 300-tonne kiln, 10m-high mixing tanks, 6m-high sheds and 12m-high storage bins. The mining plant was attached to the land by (among other things) concrete footing and slabs.

The applicant, Agripower Australia Ltd, purchased the mining plant and entered into a contract with J&D for the dismantling and removal of the mining plant. J&D subsequently delivered a payment claim to Agripower pursuant to BCIPA. In an adjudication determination, Agripower was ordered to pay J&D an amount of $2,5m (£1.6m)…

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