Security of payment – failure to consider submissions in adjudication response

The Supreme Court of Queensland has held that an adjudicator who failed to consider some of the submissions in the Principal's adjudication response failed to comply with an essential requirement of the Act, so that his determination was not a valid adjudication decision.

The Court also concluded that had the adjudicator considered the submissions, the Court would have been satisfied that the adjudicator's conclusions were irrational (i.e no reasonable person in his position could have come to that conclusion), and would have been prepared to set the decision aside on that basis. [Case ref: QCLNG Pipeline Pty Ltd v McConnell Dowell Constructors (Aust) Pty Ltd & Anor [2011] QSC 292.]