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Construction Law - Essay Example

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Section A This section of the study will examine the case of Handyman Ltd which is in a contract with Innocent Limited. The two entities signed a contract with the appropriate documentation. However, it appears that Innocent has noticed a number of issues with: 1…
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Construction Law
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Download file to see previous pages The first will deal with actions Innocent can take in relation to the inferior materials under contract law and industry statute. The second section deals with standards to be used by Innocent’s architects to call for changes and review. Finally, this section will deal with the dampness problem that was discovered after the contract was rectified. Question (A) In this section, the position of Innocent in relation to their architects's findings are examined in relation to the principles of contract law, breach of contract and the common law doctrine of temporary disconformity. Rules The terms of a contract can be express by incorporation by the terms of reference or implied by relevant legal rues. Exclusion clauses cannot be applied in cases of negligence and major activities that are not done in good faith1. In this broad and general framework, the HGCRA states that the construction contract requires a contractor to build to specification2. The Joint Contracts Tribunal (JCT) although is not statutory has a composition made up of various professional associations which set standards in the building industry. Traditionally a building's structures and diagrams are to be drawn by an architect and supervised by the same architect throughout the construction process3. The architect is not part of the contract but engaged by a party, usually the sponsor or employer in a separate contract. The architect is an independent party and an agent of the employer who must operate ethically and independently4. Express terms in contracts become conditions and when they are not followed and honoured, it can lead to an action for a breach of contract5. Quality standards and quality specifications in a building contract become a form of conditions which must be adhered to. Failure to adhere to these expressly agreed standards leads to a potential breach of contract. In English Common Law, a breach of implied or express term can authorise the aggrieved party to sue for a breach of collateral contract under tort or sue for quantum meruit for a breach of statutory duty6. Temporary disconformity could be fully reward if the contractor makes a timely request to change the parts in order to remedy an issue that is capable of being corrected7. In Surrey V Lovell8, it was held that new destruction that damages a property during the various construction stages creates different circumstances9. Rather, in a situation where a builder quickly moves to rectify the situation, an action for a breach of contract will not stand as long as the temporary disconformity is fixed in a timely manner. Application The JCT Design and Building Contract 2011 Edition gives Innocent the right to get the inferior materials fixed. All they need is to get their architects to provide a report and they can demand the modification of the materials by Handyman. Handyman has an option of fixing the defective parts and other aspects. If they are able to do it in a timely manner, they can claim temporary disconformity and prevent further actions. But if they refuse, Innocent can take the action further and sue for a breach of contract since the materials used clearly do not conform with the agreed materials and level of quality that is specified in the contract. Conclusion Innocent has the right to sue for a breach of contract. This is because the fundamental specifications that invoked the contract have not been followed to specification. Hence, they can move to get Handyman to fix it. If Handyman fixes it, ...Download file to see next pagesRead More
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