In the decision of McNab Developments (Qld) Pty Ltd v MAK Construction Services Pty Ltd & Ors  QCA 232, the Queensland Court of Appeal considered the principles of natural justice, and whether an adjudicator’s decision would be invalid by an error of law in an instances where an adjudicator also lacked good faith.
One of the features of construction projects are the different layers of contracts within the network, and of the levels, subcontractors usually find themselves at the bottom of the food chain. Therefore, security of payment (SOP) legislation plays a significant role in ensuring that all parties receive prompt payments throughout the project, especially those on the lower rungs such as subcontractors. However with that being said, there are a number of significant issues related to SOP regimes which those within the construction industry can attest to. It is hoped that with the commencement of the Building and Construction Industry Payments Amendment Act 2014 (BCIPA), and in particular, the introduction of a new adjudication process that some of the issues relating to SOP may be alleviated – especially in the area relating to adjudication decisions that are a result of jurisdictional error. Although a decision resulting from jurisdictional error is an area that is addressed within the amendment Act, the question of jurisdictional error is still worth exploring especially when considering the lack of clarity in the area traditionally.