Read the full judgment text of HCCT 101/2002 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 21 April 2004 before Hon Reyes J.
Construction law — Sub-contract disputes — Contract interpretation — Whether oral agreements can vary written lump sum Quotation — Scope of work including 'S.B.' in construction Programme — Entitlement to additional fees and extensions for unforeseen works — Incorporation of tender documents into sub-contract — Liquidated damages claims — Requirement of incorporation and proof of damages — Rejection of counterclaim for delay — Responsibility for removal of underground obstacles — Burden of proof for deductions — Lump sum contract implications. The plaintiff Wah Sung submitted a lump sum Quotation for piling and pile cap work under a sub-contract with Billion. Disputes arose over additional fees for starter bars and removal of old footings, which the court found were not included in the original scope. The court held the contract was a lump sum contract based on the Quotation alone, not varied by any oral agreement or tender documents. Accordingly, Wah Sung was entitled to additional fees and extensions of time for extra works including starter bars and removal of old footings. The defendant's claims for liquidated damages and costs related to oil tank removal failed for lack of incorporation of tender terms, lack of proven delay, and lack of evidence of damages. Deductions for site maintenance failures were unsupported by evidence and rejected. Judgment was entered for Wah Sung for $1,259,678 plus interest, with Billion's counterclaim dismissed; costs to be determined.
Legal issues: Contract type and scope of work · Entitlement to additional fees for removal of old footings and starter bar work · Validity of liquidated damages claim and counterclaim for delay · Claim for costs of oil tank removal · Deduction for failure to provide watchmen, security, maintenance and cleaning
Outcome: Judgment for Wah Sung in amount of $1,259,678 with interest; Billion's counterclaim dismissed.
Cited by 1 case