Anthony is a prestige property developer who is well known in the building and construction industry for developing high quality apartment complexes. He engages Emma as the main contractor to construct a new luxury apartment complex. Due to a previous experience with Emma’s sub-contractors, James insists on a building contract with Emma that provides for the following conditions:
a)Contract price is $15,000,000 and payable to the main contractor in the following manner:
(i)$2,000,000 upon site clearance;
(ii)$8,500,000 after completion of the walls, floors, roof, electrics and plumbing to all the units in the apartment complex;
(iii)$4,500,000 upon certification by the architect that full and final completion has occurred.
b)The main contractor shall at the direction of the developer terminate the employment of any sub-contractor engaged by the main contractor if in the opinion of the developer the sub-contractor’s work is unsatisfactory or his or her conduct constitute gross misconduct.
c)The date for completion is 12 December 2016, time being of the essence.