Read the full judgment text of HCCT33/2005 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 3 February 2006 before Hon Burrell J.
Construction contract dispute concerning subcontractor Citideco Limited’s claim against Diamond Term Limited for outstanding payment and variations under a re-decoration contract for the Hong Kong Jockey Club premises. The trial confronted issues of authority of Mr Ronald Chan to bind Diamond, liability for costs of testing materials and provision of certificates, and payment for variations. The court held Mr Chan had apparent authority, accepted an oral agreement that Diamond would bear testing and certification costs, and found Diamond liable for $319,896 in variations based on credible evidence and expert valuation. The court rejected Diamond’s arguments of waiver and the significance of certain handwritten notes. The judgment awarded Citideco a total of $869,896 with interest and costs on the High Court scale. The case illustrates principles regarding apparent authority, oral agreements in construction contracts, and assessment of variation claims under collaborative project circumstances.
Legal issues: Authority of Mr Ronald Chan · Liability for costs of testing materials and certification · Liability for variations
Outcome: Judgment for plaintiff. Diamond Term Limited liable to pay outstanding contract balance and variations.