Read the full judgment text of HCCT 57/2020 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 10 January 2024 before Hon K Yeung J.
Construction contract dispute involving the building of a house at 53 Perkins Road, Jardine’s Lookout between contractor Wah Sung Construction & Piling Limited and employer Cheerwide Limited, with counterclaims involving the architect Alliance Architects Limited and its director Chiu Sung Kin. Wah Sung sued for outstanding payments for contract works under a Varied Contractor Agreement (VCA) plus additional works outside the contract. Cheerwide denied liability and counterclaimed for overpayments, delay damages and claimed breaches of duty by architect and its director. Central issues included interpretation of the VCA, validity and inclusion of the Excepted List, authority of Alliance to instruct additional works, entitlement to payment for additional works, scope of works under the contract, delay attribution, and professional liability of architect and director. The court found the version of the VCA advanced by Wah Sung and Alliance to be true, including the Excepted List. The VCA was not void for uncertainty. The scope of the works was as per the Tender and initial plans, and additional works fell outside the contract. Wah Sung was entitled to 95% of the Contract Sum plus payment for additional works valued by expert report at HK$35 million approx., and other fees. Cheerwide’s claims for overpayment and delay damages were rejected. Cheerwide was liable for the extra payments and levies. The court held Alliance owed Cheerwide a duty of reasonable skill and care; however, no breaches were proved. Chiu was not found to owe a personal duty of care. Contracts and duties were interpreted in light of facts and professional standards with expert opinions preferred from Mr Lok over the challenged opinions of Dr Chee. Casual and speculative breach claims by Cheerwide failed. Costs were awarded against Cheerwide. Final orders included judgment for Wah Sung for HK$22,974,308.29 with interest, dismissal of counterclaims, and costs in favor of Wah Sung, Alliance, and Chiu. Cheerwide’s application to amend pleadings late in trial was dismissed. This judgment illustrates construction contract interpretation, architect authority and professional negligence principles in Hong Kong context.
Legal issues: Whether the true version of the Varied Contractor Agreement as produced by Wah Sung and Alliance is the contract between parties · Validity of the Varied Contractor Agreement · Scope of works under the Varied Contractor Agreement · Entitlement to 95% of Contract Sum · Authority of Alliance to instruct Additional Works and entitlement to payment for Additional Works · Quantum of Additional Works payable · Entitlement to Administrative Fee and HD Payments · Entitlement to Retention Money · Responsibility for delay in completion – Wah Sung, Alliance and Chiu · Claims for Excess Payment and Remedial Costs by Cheerwide · Duty of care owed by Alliance to Cheerwide · Personal duty of care owed by Chiu to Cheerwide · Breach of professional duties by Alliance and Chiu · Causation and loss from alleged breaches
Outcome: Judgment entered for Wah Sung against Cheerwide for HK$22,974,308.29; Cheerwide’s counterclaims against Wah Sung, Alliance, and Chiu dismissed; no personal liability on Chiu.
Cited by 3 cases · Cites 8 cases