Construcciones Yamaro: A $22.6 million progress claim lesson for construction teams
A recent Western Australian Court of Appeal decision has delivered a costly reminder that the statutory clock for responding to a progress claim can begin before anyone opens the email.
By Ian Moss, marketing leader for Australia and New Zealand at Payapps – An Autodesk Company.
In Co-Operative Bulk Handling Ltd v Martinus Rail Pty Ltd [2026] WASCA 82, Martinus Rail emailed a progress claim (or payment claim) worth about $22.6 million to the principal’s nominated representative on Saturday, 31 August 2024.
The email was not opened until Monday. The contract also stated that communications received on a non-business day were deemed received on the next business day, so the principal issued its payment schedule on Tuesday, 24 September.
The Court found that the contractual provision could not change when the progress claim was given under Western Australia’s Building and Construction Industry (Security of Payment) Act 2021. Because the email became capable of being retrieved from the designated address on the Saturday, the statutory response period began then. The payment schedule was late, leaving the principal liable under the Act to pay the claimed amount.
“It’s yet another example of how business hours don’t really exist anymore, even if contractually defined,” said Claire Jenkin, product manager at Payapps.
The decision also raised an important distinction concerning emails sent to an address the recipient has not designated. In that situation, receipt may depend on both the email being retrievable and the recipient becoming aware that it was sent there.
“I found the Court’s observation about emails sent to an address the recipient hasn’t designated particularly interesting, as I haven’t seen that issue addressed before in Australia,” said Jenkin.
“It reinforces that organisations need clarity not only about when claims can be received, but where they should be sent. Designated addresses need to be clearly communicated, kept current and properly monitored, while teams also need a process for identifying and escalating claims that arrive elsewhere in the business.”
While the ruling concerned WA legislation, the operational lesson extends further. Security of payment laws differ across Australian jurisdictions, and New Zealand has its own payment claim and payment schedule regime under the Construction Contracts Act 2002. In every market, construction businesses need to understand which channels can receive claims, when statutory timeframes begin and who is responsible for responding.
The case exposes the weakness of managing commercially critical progress claims through fragmented inboxes, spreadsheets and manual handovers. A claim may arrive after hours, during leave or in an inbox monitored by only one person. The deadline may still be running while the email is being found, forwarded and assigned.
Related stories:
- Why builders are outgrowing spreadsheet-based progress claims
- De-risking construction technology investment
- Late payments are hurting more than subcontractor cash flow
These administrative gaps can create a snowball effect in which an initially minor process failure escalates into uncertainty, delay and potentially a formal construction dispute.
Purpose-built progress claim technology can help reduce this operational risk by centralising claims, standardising assessment workflows and improving visibility over submissions, approvals and payment schedules.
This was one of the reasons FEC Constructions adopted Payapps. With approvals previously managed through spreadsheets circulated by email, the business identified the risk of losing track of what was due and missing security of payment deadlines. Payapps introduced automated notifications and clearer oversight of outstanding claims, helping FEC strengthen governance and support compliance as its project portfolio grew.
Technology cannot replace legal advice or determine whether a particular claim has been validly served. However, it can support the visibility, accountability and audit trail required for a stronger compliance process.
The lesson is not that commercial teams should spend every weekend checking emails. It is that progress claims cannot be treated as ordinary inbox administration.
Complete the Payapps Progress Claim Health Check to identify opportunities to improve efficiency, visibility and control.
This article provides general information only and does not constitute legal advice.
The post A $22.6 million progress claim lesson for construction teams appeared first on Inside Construction.
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