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NBC3005 Construction Law

tag 0 Download 6 Pages / 1,476 Words tag 04-11-2020
  • Course Code: NBC3005
  • University: Victoria University
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  • Country: Australia

Questions:

1.

a.Explain what the term “Time at Large” means and how does it differ from Extension of Time (EOT) in construction contract law.

b.Hives Construction Ltd (H), the main contractor, entered into a sub-contract with sub­contractors Honey Control Systems Ltd (C) relating to the BumbleBee Stadium project to complete the works within 60 weeks.

The Sub-Contract contained an extension of time clause drafted in wide terms. It allowed extensions of time for (i) carrying out variation instructions under Clause 4.6 and (ii) for delay caused by any act of prevention or default by H. Clause 4.6 provided a procedure for issuing variations involving proposals and responses, so that if HC issued a request for a variation proposal, H was to issue a written response stating the effect on the date of completion. It also made compliance with the notification provision a condition precedent for an entitlement to an extension of time.

After C had commenced work, H issued a number of revised programmes relating to Honey's work, and Honey's works fell into delay. C issued delay notices which H rejected, and therefore H did not assess any entitlement to an extension of time.

With reference to relevant case law:-

1.Examine whether or not H has engaged in acts of prevention, and whether or not HC may be entitled to extensions of times and payment for work on the revised programmes.

2.Advise C whether or not time may have been "set at large" by H's conduct.

2.

a.Which party to a construction contract benefits the most from liquidated damages provisions in construction contracts, and how does it differ from the “Penalty” clause ?

b.
Moss Builders and the Holt Hotels are negotiating a contract for the refurbishment and extension of a hotel complex near Heathrow airport. Negotiations drag on because the parties cannot agree the amount fixed for Liquidated Damages and the procedure for Adjudication.

Holt Hotels finally send a letter of intent instructing Moss Builders to start work, pending agreement on a contract. The parties continue to exchange correspondence and have several meetings without reaching agreement.

Over a 12-month period Moss Builders carries out work and Holt Hotels makes monthly payments in return.

The work is now complete but Holt Hotels complain that some of the work is defective. Moss Builders refuses to accept any responsibility saying that the parties have no contract.

  1. Discuss and Advise Moss Builders of their legal position.
  2. Would it make any difference if there was defective work, but no payments at all had been made?

3.

a.
List and explain four key insurances that should be taken out for any building project using a JCT form of contract.

b.Gamble (G) contractors have a JCT SBC 11 standard form building contract with developers, Swindles UnLtd. (S) to build a casino in Manchester. G sub-contracted the supply and installation of twenty bathrooms to Vandells Ltd (V). The sub-contract required V to obtain a particularly durable stone tile called Mighty 49. V went and selected the tiles from the cheapest supplier it could find, but soon after the tiles had been installed in all the bathrooms, some of the tiles started to crumble and the tiling needed to be done again.

G wants the sub-contractor V to pay for the costs of re-tiling. V argues that it does not have to pay these costs because it was not responsible for choosing the type of tiles to be used for the roof, and so it is not the its fault if the tiles are of unsatisfactory quality, and not fit for their purpose.

  1. Advise V which argument is likely to be successful in court.
  2. What would V legal position be, if instead, it had been contracted to accept a delivery of materials from a supplier nominated by the employer?
  3. What would V's legal position be, if instead, it had been told to choose one type of material from a list of materials given in the contract Bills and he chose Mighty 49 and it was not fit for purpose?

4.

1.
Explain the term “Fit for Purpose” in construction contract law. Supplement your answer with a case law.

The main contractor Regal Ltd (R) has a standard building contract with the developers, Sharp Ltd. to build a hotel in England with 50 ensuite bathrooms. R sub­contracted the bathroom tiling to Slippery Ltd. (S). The sub-contract required S to obtain and install a particularly durable stone tile called Crumble 99. S went and bought the tiles, but soon after the tiles had been fixed to the bathrooms, they started to crumble and all the tiling needed to be done again. The problem was traced to the manufacturer of the tiles. The tiles contained hidden defects.

R wants the sub-contractor S to pay for the costs of re-tiling because it obtained them.

S argues that it does not have to pay these costs because it was not responsible for choosing the type of tiles to be used for the roof, and so it is not its fault if the tiles are of unsatisfactory quality, and not fit for their purpose.

Assume you are the contract administrator for S,  with reference to case law and a standard form contract:-

a)Advise S which argument is likely to be successful in court and why.          

b)What would S's legal position be, if instead, it had been contracted to accept a delivery of materials from a supplier nominated by the employer?                                                                                                       

c)What would S' s legal position be, if instead, it had been told to choose one type of material from a list of materials given in the contract Bills and he chose Crumble 99 and it was not fit for purpose?

5.

a.Explain the meaning of “variations” and the common method for “valuing variations” during construction? Supplement your answer with an example.

b.Free Ltd (F) contractors have a standard form building contract with

developers, Masons Ltd (M) to build the roof of a new house of Parliament in Manchester. With permission, F sub-contracted the supply and installation of twenty bathrooms to Vandells Ltd (V). The sub-contract required V to obtain a particularly durable stone tile called Mighty 49.  V went and selected the tiles from the cheapest supplier it could find, but soon after the tiles had been installed in all the bathrooms, some of the tiles started to crumble and the tiling needed to be done again. The problem was traced to the manufacture of a batch of tiles that contained hidden defects. F wants the sub-contractor V to pay for the costs of re-tiling. V argues that it does not have to pay these costs because it was not responsible for choosing the type of tiles to be used for the roof, and so it is not its fault if the tiles are of unsatisfactory quality, and are not fit for their purpose.

a) Advise V which argument is likely to be successful in court.

b) What would V legal position be, if instead, it had been contracted to accept a delivery of materials from a supplier nominated by the employer?

c) What would V's legal position be, if instead, it had been told to choose one type of material from a list of materials given in the contract Bills and he chose Mighty 49 and it was not fit for purpose?

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My Assignment Help. (2020). Construction Law. Retrieved from https://myassignmenthelp.com/free-samples/nbc3005-construction-law/liquidated-damages.html.

My Assignment Help (2020) Construction Law [Online]. Available from: https://myassignmenthelp.com/free-samples/nbc3005-construction-law/liquidated-damages.html
[Accessed 08 August 2022].

My Assignment Help. 'Construction Law' (My Assignment Help, 2020) <https://myassignmenthelp.com/free-samples/nbc3005-construction-law/liquidated-damages.html> accessed 08 August 2022.

My Assignment Help. Construction Law [Internet]. My Assignment Help. 2020 [cited 08 August 2022]. Available from: https://myassignmenthelp.com/free-samples/nbc3005-construction-law/liquidated-damages.html.


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