Read the full judgment text of HCCT 75/2005 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 22 February 2006 before Hon Reyes J.
Construction law — Arbitration — Prolongation costs — Quantum — Delay in site possession — Concurrent delay — Attribution of prolongation costs — Whether Arbitrator correctly applied test requiring delaying events caused by Authority to be effective or dominant cause of loss — Whether finding of minimum site establishment due to Authority’s delay was factual or hypothetical — Court upheld Arbitrator’s factual findings and approach as reasonable and appropriate. The dispute related to contract for housing construction and related water mains works at Yan Tsui Street. Due to delay in possession caused by the Authority, Wan Chung claimed prolongation costs for additional site establishment during the period of delay. The Authority challenged the Arbitrator’s application of law and attribution analysis, contending no proper finding that minimum establishment was maintained because of Authority’s delay and that concurrent delays negated such attribution. The Court rejected these submissions, finding the Arbitrator’s conclusions well-supported by evidence including an independent surveyor’s report, and logically reasonable in light of facts. The appeal was characterized as a one-off matter and leave to appeal was refused.
Legal issues: Whether the Arbitrator correctly applied the test for prolongation costs · Attribution of prolongation costs in cases of concurrent delays
Outcome: Leave to appeal refused