A Canberra Institute of Technology consultant pushed for more and more money to be paid sooner rather than later, resulting in 33 per cent of a $5 million contract being paid before work even started, a barrister has told a court.
Patrick Hollingworth, who is suing CIT, was present in ACT Supreme Court on Tuesday as a hearing into his company's case against the institute wrapped up. He is seeking damages totalling $3.4 million after the multimillion-dollar contract was terminated.
Redrouge Nominees, trading as Think Garden, has alleged the institute had "repudiated the agreement" and, in doing so, was liable to pay the remaining amount left on the $4.99 million contract.
In his closing submission to the court, barrister for CIT, Andrew Berger KC, said during contract negotiations Mr Hollingworth had "pushed for more and more to be paid sooner rather than later".
Mr Berger argued the "only rationale being offered on that, other than good faith with CIT, was to mitigate risk".
The barrister said this "top-heavy" contract "does not sit comfortably" with Mr Hollingworth's argument that the whole price was liable to be paid.
The court heard the business was paid 33 per cent of the contract price before work started, and more than half the money was due a quarter-way through the contract.
Giving evidence on Monday, Mr Hollingworth who previously described himself as a "complexity and systems thinker" told the court he was a scientist and the director of Think Garden.
Mr Hollingworth had been engaged by the CIT in a series of contracts spanning a five-year period. The nearly $5 million contract was the largest and was set to run for two years. Think Garden had already been paid nearly $1.7 million on the execution of the contract.
The CIT signed the contract with Think Garden in March 2022. The ACT Integrity Commission found former CIT chief executive Leanne Cover had engaged in "serious corrupt conduct" in the awarding of this contract as Skills Minister Chris Steel and the CIT board had been misled. The commission is still investigating the matter but has not made any findings against Mr Hollingworth.
CIT indefinitely paused the agreement with Think Garden on June 27, 2022. This was days after the ACT Integrity Commission announced it was investigating the matter.
By July 7, 2022, Think Garden provided a formal notice to CIT, claiming it was in breach. The alleged breaches included the institute cancelling meetings, placing a pause on the agreement, and "staff not engaging with Think Garden".
Later that month, Think Garden provided notice of termination of agreement demanding that the institute pay millions in outstanding money.
On Tuesday, the court heard the $3.4 million in damages sought by Mr Hollingworth included $48,000 he paid to five employees in July, August and September 2022.
Mr Hollingworth's lawyer argued his client had continued to pay employees and had "not already been compensated" for this.
Forensic accountant, Adam Giliberti, gave evidence on Tuesday, saying: "It is a cost that had been incurred following the termination of the contract".
Justice David Mossop is set to hand down his decision at a later date. He flagged this may take several months.
