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Selected cases

Federal Court of Australia · [2026] FCA 136

Wang v Creation Homes QLD

A Federal Court construction contract dispute about delay allegations, progress payment default, termination, limitation periods and...

Federal Court of Australia27 Feb 2026

Plain-English explainers, not legal advice. Check the linked official source before you rely on a specific section, and get advice for your situation.

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Quick read

  • Construction disputes are won on the contract, payment notices, dates and records.
  • A Federal Court construction contract dispute about delay allegations, progress payment default, termination, limitation periods and AI-assisted litigation material.

Use this to check

  • Construction contract disputes depend heavily on dates, payment records and notice compliance.
  • A builder's right to suspend or terminate should be exercised through the contract process.
  • AI-assisted legal documents can hurt a case if they obscure the real facts and issues.

Decision snapshot

  1. 1

    What happened

    • Ms Wang entered into a construction contract with Creation Homes QLD Pty Ltd in February 2016 for a home in a new development in Coomera, Queensland.
    • Construction was not completed.
    • Ms Wang alleged misleading or deceptive conduct, unconscionable conduct and breach of contract, saying Creation delayed construction and caused her to lose finance.
    • Creation cross-claimed for unpaid amounts and damages after issuing a notice of termination in January 2020.
  2. 2

    What the court had to decide

    • The Federal Court had to decide whether Creation Homes had engaged in misleading, deceptive or unconscionable conduct, whether it breached the construction contract by delay, whether Ms Wang's claim was out of time, and whether Creation's cross-claim for unpaid progress amounts and termination damages should succeed.
  3. 3

    What the court decided

    • The Court dismissed Ms Wang's originating application.
    • Creation's cross-claim succeeded, with orders for $51,800 plus interest and $114,742.66 plus interest, and Ms Wang was ordered to pay Creation's costs.

Practical impact

Practical read

  • Construction disputes are won on the contract, payment notices, dates and records.
  • AI-polished pleadings or dramatic allegations will not replace evidence about finance approval, progress claims, suspension, termination and loss.

Useful next steps

  • Construction contract disputes depend heavily on dates, payment records and notice compliance.
  • A builder's right to suspend or terminate should be exercised through the contract process.
  • AI-assisted legal documents can hurt a case if they obscure the real facts and issues.
  • Limitation periods and choice of law can matter where parties or properties are in different states.
  • Keep a single chronology of contract date, finance approval, approvals, progress claims and notices.

Practical read

This case is useful for construction businesses and customers because it returns the dispute to basics. The Court looked at the contract, chronology, finance approval, progress payment, suspension rights, termination notice and limitation period. The party with the cleaner contractual record won.

The judgment also contains a modern warning about AI-assisted legal documents. The Court was concerned that some material had a polished style but dissolved into empty rhetoric when inspected. That did not help the applicant explain the claim or answer the cross-claim.

For builders, developers and trades, the practical lesson is to keep the paper trail simple and exact. Progress claims, payment reminders, notices to remedy breach, suspension notices, termination notices, finance communications and variations should be written so someone outside the project can reconstruct the timeline years later.

Checks to run

Key points

  • Keep a single chronology of contract date, finance approval, approvals, progress claims and notices.
  • Send notices to remedy, suspension notices and termination notices exactly as the contract requires.
  • Record delay causes and approval dependencies while the project is live.
  • Check limitation periods before filing a construction or ACL claim.
  • Use AI only to organise legal material after the facts and evidence are clear.

Key takeaways

  • Construction contract disputes depend heavily on dates, payment records and notice compliance.
  • A builder's right to suspend or terminate should be exercised through the contract process.
  • AI-assisted legal documents can hurt a case if they obscure the real facts and issues.
  • Limitation periods and choice of law can matter where parties or properties are in different states.

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