Read the full judgment text of HCCT 30/2013 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 11 April 2018 before Hon Mimmie Chan J.
Construction contract — Subcontract — Breach by subcontractor in failing to provide sufficient workforce and suspending work without cause — Whether subcontractor waived obligations due to delay in work commencement — Requirements to follow site instructions and coordinate work — Interpretation of termination clauses in subcontract — Requirement (or not) of prior notice before termination under clause 23.1 — Resumption of work and obstruction claims — Incentive bonus payment conditions — Damages for incomplete work and additional costs — Claims for remedial works lacking evidence — Court finds WK in breach, entitling Aggressive to valid termination on 26 July 2013; rejects WK’s counterclaim for bonus balance and claims of wrongful obstruction; allows damages for completion and subcontractors’ additional costs; awards costs to Aggressive. Terms of subcontract required WK to follow work sequence and directives without protest; rising costs were not excuse to refuse work. WK’s letters of June 2013 constituted repudiatory breaches. No implied term requiring prior notice of termination under clause 23.1 exists. WK’s purported resumption of work in late July 2013 was not genuine and was linked with threats. Incentive bonus payable in stages, not in lump sum; unpaid balance disallowed. Damages for incomplete work totalled HK$4,672,157.91 and subcontractors’ costs HK$1.85 million allowed; remedial works claims disallowed for lack of proof. Costs to Aggressive.
Legal issues: Breach of subcontract agreement by WK · Whether Aggressive was entitled to terminate the Agreement without prior notice · Whether WK was ready to resume work and was obstructed by Aggressive · Entitlement to unpaid bonus payment · Damages for completion and additional costs
Outcome: Claim by Aggressive allowed; Agreement terminated validly; WK’s counterclaim dismissed
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