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ARBE1301 Construction Law And Legislation

tag 0 Download 14 Pages / 3,451 Words tag 02-07-2021


Agro Builders Inc enters into a contract with Supersafe Prisons Inc to build a new   prison facility. Agro Builders engages Ego Architects to prepare the architectural drawings. The contract provided for payment for drawings on a 3-stage basis.

The drawings are presented and approved by Agro. Subsequently Agro refuses to pay for the Architectural services on the basis that they assert that the drawings involved a variation of the provisions of the contract and were inadequate.

A site meeting is organised with the parties.  They discuss the requirements and verbally agree on terms to vary the contract so that the drawings as presented can be carried out. Acting on this agreement the building proceeds.  A few weeks later the builder refuses to pay the architect because the builder asserts that the drawings are not complete and do not comply with the terms of the written contract.

Part A

  1. Is there a contract in this case and how is it formed?
  2. In this case can the verbal agreement vary the terms of the written contract?
A) Describe the Legal Principles applicable and the hierarchy of contract


B) What is the legal affect of stamping the specifications “approved” on any future contractual position? Discuss and explain the legal principle applicable.
C) Having regard to the problems encountered in this case what procedures would you formulate to cover to avoid problems of amendments in the course of construction and advice about the resolution of technical disputes and use of experts?

1 -3 require an identification of the relevant legal principles of Contract and the application of these principles to the fact situation to indicate a possible outcome. Question 4 requires the identification of the problems in the case example and having regarded to the legal principles what action can be taken in planning to avoid these problems in the future?

Part B

(a) (Assume that the Security of Payment Legislation Does not Apply).  Eiffel wishes to commence court proceedings to substantiate its claim that the   specifications are not complete. Describe what the project manager needs to do to have technical material for the court hearing and how the Court assesses expert witnesses? What are the problems and risks in using expert witnesses? Refer to case examples.

(b) You are required to advise Agro Builders of the procedures required in the future if it wishes to avail itself of the payment process under the Building Industry Security of payment Act (Victoria). In your advice you should include what is required to ensure that a claim fall under the scheme of the Act and any issues as indicated in the cases referred to in the blackboard notes .Refer and discuss the relevant section of the Building Industry Security of Payments Act. (Victoria)

1 requires evidence of the understanding of the court process, risk involved and   preparation use of witnesses and the role of expert witnesses in the court process.

2 requires how an application under the Security of Payments Act would proceed in the fact situation provided. Reference to the relevant section of the Act is required.

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Total 14 pages

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