Read the full judgment text of HCCT000095/2001 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 1 December 2003 before Hon Burrell J.
Construction Law — Fire Service Contracts — Payment disputes — Contract terms — Variation Orders — Materials supplied — Insurance deductions — Defects — Costs order. The dispute arises from two consolidated actions relating to fire service installation works in Cheung Kong Centre. Technicom claims unpaid sums under a written contract (TOP 1) and works executed under implied terms (TOP 2). Issues include contract terms incorporation, valuation of nearly 50 variations with 21 disputes, entitlement to materials cost deduction, insurance premium liability, and defect rectification costs. The court held that certain letter terms were not incorporated, adjusted disputed variation valuations balancing rate and duplication claims, allowed median deductions for materials after excluding hoisting, rejected insurance premium deductions, and allowed Guardian's claim for rectification costs. For TOP 2 contract, the court found no fixed contract but authorized payment for work done on a piecemeal basis at agreed unit rates. The court gave an overall costs order that Guardian pay 70% of Technicom's costs, reflecting success and failure across issues. The TOP 1 quantum remains to be finally calculated by parties before consent order. An alternative arbitration approach was noted as suitable but unavailable.
Legal issues: Whether items 5(g) and 5(l) of Guardian's letter dated 18 March 1998 form part of the TOP 1 contract · Value of disputed variation orders (VOs) in TOP 1 contract · Deduction for cost of materials supplied and transportation under TOP 1 · Reimbursement of $460,000.00 paid to labourers of Technicom's subcontractor · Liability for 1.5% insurance cost deducted from contract sum · Outstanding defects and costs of rectification · Scope and terms of TOP 2 contract · Liability for insurance cost in TOP 2 · Deduction of materials and transportation for TOP 2 · Costs allocation
Outcome: Technicom awarded approximately $3,000,000 for TOP 1; Technicom awarded $384,450.09 for TOP 2 payable to Guardian; Guardian must pay 70% of Technicom's costs for both actions.