Baker Merz Construction Lawyers
Expert construction law services. Contract disputes, adjudication, claims & litigation. Free consultation.
08 6245 9888Quick Enquiry
Services
Contract Review & Drafting
Mining, EPC, GC21, AS4000 & resources sector agreements.
SAT Representation
State Administrative Tribunal for building complaints & domestic disputes.
Security of Payment
Payment claims & adjudication under the WA Construction Contracts Act 2004.
Claims Preparation
Variation, EOT, delay & disruption claims with CPM analysis.
Construction Litigation
Magistrates, District & Supreme Court of Western Australia.
Domestic Building Contracts
Home Building Contracts Act 1991 advice & disputes.
The Perth & Western Australian Construction Market
Western Australia's construction industry occupies a unique position within the Australian economy, shaped by vast mineral wealth, geographic isolation, and cyclical resources activity. The WA market is dominated by mining and resources projects, creating legal challenges that demand specialist local knowledge. The mining sector remains the largest driver of construction activity, encompassing iron ore in the Pilbara, gold in the Eastern Goldfields, and the rapidly expanding lithium industry.
These projects involve multi-billion dollar investments, international joint ventures, and complex engineering procurement and construction contracts requiring careful legal navigation. Beyond mining, WA's infrastructure pipeline includes METRONET, renewable energy developments, hospital redevelopments, and commercial building projects. The fly-in fly-out workforce model creates unique challenges around employment arrangements, accommodation standards, and occupational health and safety on remote sites.
Western Australian Legislation We Work With
The Construction Contracts Act 2004 (WA) provides the foundation for security of payment across Western Australia, establishing statutory rights to progress payments and creating adjudication for resolving payment disputes. The Building Act 2011 (WA) establishes the regulatory framework for building standards, approvals, and compliance. The Home Building Contracts Act 1991 (WA) provides protections for owners of residential construction work including mandatory contract requirements and implied statutory warranties. The State Administrative Tribunal Act 2004 (WA) establishes the tribunal hearing building disputes. The Heritage of Western Australia Act 1990 and the Aboriginal Heritage Act 1972 (WA) create obligations frequently intersecting with projects in regional and remote areas.
Recent Case Studies — Perth
Pilbara Iron Ore — EPC Contract Performance Dispute
A mechanical contractor on a Pilbara iron ore processing plant expansion was facing termination for convenience by the EPC head contractor, with the head contractor claiming the contractor had failed to achieve mechanical completion milestones. The contractor's claim value was $7.2 million in unpaid progress claims, demobilisation costs, and lost profit. The head contractor's position was that the contract's termination for convenience clause allowed unilateral termination without compensation beyond the value of work completed. Our engineer-lawyers reviewed the EPC contract, which was a heavily amended FIDIC Yellow Book, and identified that the termination for convenience clause had been amended to remove the contractor's entitlement to lost profit — an amendment that was potentially unenforceable under the WA Construction Contracts Act 2004 as an unfair contract term. We also established that the mechanical completion milestones had not been achieved because the head contractor had failed to provide the required electrical infrastructure, not because of any contractor default. We commenced proceedings in the Supreme Court of Western Australia and simultaneously lodged an adjudication application under the WA Security of Payment regime. The adjudicator determined in our client's favour for $4.8 million, and the Supreme Court proceedings settled with the head contractor paying a further $1.9 million — a total recovery of $6.7 million from a $7.2 million claim.
METRONET — SAT Building Complaint Defence
A Perth-based builder was the subject of a building complaint to the State Administrative Tribunal (SAT) by a homeowner in a METRONET transit-oriented development, alleging structural defects in a townhouse terrace. The builder faced potential orders for $340,000 in rectification work and a finding of defective building work that would trigger a mandatory QBCC licence review. Our engineer-lawyers reviewed the structural drawings, the construction records, and the expert reports prepared by both parties. We identified that the alleged structural defects were not defects at all but were standard construction tolerances that met the National Construction Code and the relevant Australian Standard. We also established that the homeowner's expert had incorrectly applied the wrong standard for the class of building. We represented the builder at the SAT hearing, cross-examining the homeowner's expert and presenting our structural engineer's evidence. The SAT member dismissed the complaint entirely, finding that the building work complied with the applicable standards and that the homeowner's expert evidence was unreliable. The builder avoided any rectification order and preserved its clean licence record.
Lithium Processing Plant — FIFO Camp Logistics Dispute
A logistics contractor engaged to provide FIFO camp facilities, transport, and catering services for a lithium processing plant in the Goldfields was facing a $2.3 million claim from the principal for alleged failure to meet camp occupancy standards. The principal was withholding all progress payments and had threatened to engage an alternative provider, which would have rendered the contractor's $4 million camp investment unrecoverable. Our engineer-lawyers reviewed the contract, which was a bespoke logistics agreement with complex performance metrics for camp occupancy, meal quality, and transport availability. We established that the principal's performance assessments were not conducted in accordance with the contract's audit mechanism, and that the alleged deficiencies were either within the contract's tolerance thresholds or caused by the principal's own failure to provide the required site infrastructure. We also identified that the principal's threat to terminate and engage an alternative provider was a breach of the contract's exclusive provider clause. We commenced Supreme Court proceedings seeking injunctive relief and a declaration that the principal's termination threat was unlawful. The matter settled at mediation with the principal agreeing to pay all outstanding progress claims plus a $400,000 settlement for the threatened termination, and the contract continued to its full term.
Office Details
Address
Level 1, 11 East Parade, East Perth WA 6004
Phone
08 6245 9888Hours
Mon–Fri 9:00am – 7:00pm
Areas We Serve Across Western Australia
Perth CBD & Inner Suburbs
West Perth, Subiaco, East Perth — commercial developments and residential projects.
Northern & Southern Suburbs
Joondalup, Wanneroo, Fremantle, Cockburn, Mandurah — industrial and residential growth.
Mining Regions
Pilbara, Goldfields, Karratha, Port Hedland — iron ore, gold, and lithium project disputes.
Regional WA
Bunbury, Geraldton, Broome, Kalgoorlie — remote service capability for isolated projects.