Adams Construction Pty Limited was engaged by Burnside Council as the head contractor for the construction of the new council offices in Burnside. Adams subcontracted the supply and installation of the roof coverings to Roofem Pty Ltd.

The subcontract agreed between Adams and Roofem stated that the roof covering works were to be completed by 3 May 2019 for a lump sum price of $785,000. By 12 April 2019, however, Roofem had only completed 75% of the roof coverings. Despite this, Roofem submitted a final account for payment in the sum of $1.2 million.

Adams protested to Roofem, stating that contractually it was not obligated to pay the final account sum until all the roof covering works had been completed. Furthermore, Adams pointed out that it could not justify paying Roofem any more than $800,000 for the work they had done. Roofem replied to Adams in a letter stating:

Ifpaymentofourfinalaccountisnotimmediatelyforthcoming,wecannot guarantee if or when the roof covering works will becomplete.

Worried that any delay in the roof covering works would significantly delay the projectand cause them to incur liquidated damages under the head contract with Burnside Council, Adams acquiesced to Roofem's demand and paid them $1.2 million. Roofem expedited their works and completed the roof coverings on time by 3 May2019.

Six months after the roof covering works had been completed and the final account paid to Roofem, Adams initiated a court action to try to recover the sum of $400,000overpayment, which Adams felt it had been forced to payRoofem.

Advise Adams as to the legal position regarding recovery of the overpayment.