A contractor or subcontractor liable to pay an adjudication amount pursuant to a determination by an adjudicator under the Act can apply to have the determination set aside.
An application to challenge a determination by an adjudicator under the Act must be made to the Supreme Court of Queensland. The Supreme Court frequently hands down decisions where it has considered these challenges.
There are limited grounds available to challenge a determination.
The grounds to set aside a determination are limited to jurisdictional error.
Jurisdictional error is a complex area of law and can be difficult to evaluate in any given case.
Examples of jurisdictional error committed by an adjudicator in making a determination under the Act include, inter alia, the adjudicator:
- fails to give adequate reasons;
- denies a party procedural fairness;
- fails to consider a matter required by section 88(2) of the Act; and
- fails to act in good faith.
For example, on 9 September 2025 the Court declared an adjudication decision void in the matter of Pico Play Pty Ltd v Coast Entertainment Operations Limited [2025] QSC 227 https://www.sclqld.org.au/caselaw/157819 In that particular matter, the adjudicator had decided that he did not have jurisdiction to determine the adjudication for two reasons. The claimant (Pico) applied for a declaration that the decision was void for jurisdictional error – i.e. that the adjudicator ought to have accepted that he had jurisdiction and determined the amount owing. The adjudicator’s determination was declared void but it is unclear how the matter was then dealt with, perhaps it returned for a fresh determination by the adjudicator or a different one.
But it is worth noting the time cost of the dispute – the payment claims were served on 28 January, 2025, the adjudication application was made on 25 March, 2025, the adjudication determination was given on 22 April, 2025, the proceedings filed on 1 May 2025, the matter was heard by the Court on 23 June 2025, and the decision given on 9 September, 2025. There would also be attendant financial cost and cashflow considerations for parties to disputes such as these.
Justin Mathews, partner of our firm can be contacted on 07 5574 0111 or via email at justinm@qbmlaw.com.au to provide advice and assistance with respect to all aspects of the adjudication process.
Meet The Author!
Meet the author of this blog article, Justin Mathews. Over the next several weeks, we will post a series of articles relating to Queensland building and construction matters written by Justin.
Justin is a registered Adjudicator in Queensland under the Building Industry Fairness (Security of Payment) Act 2017 and also in the Northern Territory under its security of payment legislation, and an accredited specialist in commercial litigation.
He represents a number of Queensland building contractors and other parties in building and construction disputes both through the adjudication process and in the various state courts of Queensland, New South Wales, and Northern Territory, as well as advice in relation to contractual matters, and QBCC regulatory matters including matters involving the statutory warranty scheme.
In these articles Justin will discuss a number of matters of interest to members of the Queensland building and construction industry.
For enquiries concerning building matters, Justin can be contacted by email justinm@qbmlaw.com.au or Ph: (07) 5574 0111.
