Read the full judgment text of HCCT 49/2010 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 15 August 2016 before Hon Mimmie Chan J.
Construction Law — Contract dispute — Measurement and valuation of steel reinforcement work — Interpretation of contract drawings and clauses — Disputes over quantities of reinforcing bars in floor slabs, RC wall under partition, Auditorium columns, and concrete testing — Determination of measurability of spacer bars — Claims for transportation costs internal to Site — Administrative fee on wages paid by Plaintiff on behalf of Defendant — Conditional ex gratia payment under separate letter. The main contract was a labour-only sub-contract for steel reinforcement works at Hong Kong Science Park Phase 2. The Plaintiff overpaid the Defendant under dispute; the Defendant counterclaimed various amounts including variations, bonuses for low wastage and prolongation costs (the latter withdrawn). Expert evidence largely agreed except on key quantities and interpretation of drawings. The Court preferred the Plaintiff’s experts on disputed interpretation issues on floor slab bars and RC wall reinforcement, dismissing additional claims for works on Auditorium columns and concrete testing Bars for failure of evidence. Spacer bars were held to be included in unit rates per contract clauses and not separately measured. Transportation costs claim allowed at 50% reflecting external versus internal transport. Plaintiff’s claim for a 15% administrative charge on wages paid for Defendant’s workers was upheld as a reasonable contractual pre-estimate, not a penalty. The Defendant’s entitlement to ex gratia payment was denied due to failure to meet agreed manpower conditions.
Legal issues: Floor slab Bar measurement dispute · Reinforcement Bars under partition walls dispute · Auditorium columns Bar works dispute · Concrete testing Bars claim dispute · Spacer bars measurability under Contract · Defendant’s entitlement to transportation costs within Site · Administrative cost charge for wages paid by Plaintiff · Entitlement to 20% ex gratia payment
Outcome: The Court rejected the Defendant’s claims for Auditorium column Bars, concrete testing Bars, and separate measurement of spacer bars; allowed 50% of Defendant’s transportation costs claim; upheld Plaintiff’s claim for 15% administrative fee on wages paid; and held that the Defendant was not entitled to the 20% ex gratia payment due to failure to meet conditions. The parties were directed to submit an agreed draft order on all amounts, interest, and costs by 5 September 2016.
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