Carruthers Contracting ordered to pay Allencon $906,041

A Sunshine Coast company and a Brisbane company have gone head-to-head in a lengthy battle over claims one was withholding more than $350,000. Here is how it unfolded.

A Sunshine Coast company and a Brisbane company have gone head-to-head in a lengthy battle over claims the Sunshine Coast company were withholding more than $350,000.

A Sunshine Coast contracting company has been ordered to pay a Brisbane company more than $900,000 after the latter appealed a court decision over claims hundreds of thousands of dollars were being withheld.

According to court documents, Yandina-based civil contractors Carruthers was accused of retaining more than $350,000 from Brisbane specialist civil contractor Allencon Pty Ltd after the latter agreed to construct roadworks for a lump sum of $2.08 million.

The two companies entered into a written subcontract in 2021.

Allencon took the matter to the District Court to have Carruthers ordered to pay the money, but their case was rejected.

The Brisbane company then sought to have the matter appealed.

Court documents stated Allencon claimed the road works were “practically complete” by December 10, 2021, and put in a claim to Carruthers for $955,079.48 on December 24, 2021.

This included $400,772.48 from an earlier unpaid claim, which Carruthers paid in January 2022.

However Allencon was only paid a further $202,572.12, the documents stated, leaving $351,734.88 outstanding.

Carruthers refused to pay the remaining sum, and the matter was taken to the District Court.

The Supreme Court in Brisbane. Picture: Dan Peled

But Judge Michael Burnett rejected Allencon’s case on claims of inconsistencies between the Building Industries and Fairness Act and the terms of the subcontract.

Court documents stated Carruthers had argued the subcontract did not provide a requirement period for a payment schedule in response to the claim.

Allencon then appealed the matter, claiming the opposite was true.

Their appeal was granted, and Carruthers was ordered to pay the outstanding money at seven per cent interest per annum from March 1, 2022, until the date of payment as well as $554,307 at seven per cent interest per annum from January 28 until February 28, 2022.

The Sunshine Coast Daily has reached out to Carruthers for comment.

Originally published as Carruthers Contracting ordered to pay Allencon $906,041