Read the full judgment text of HCCT 3/2008 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 2 June 2008 before Hon Reyes J.
Arbitration — Construction contract — Sub-contract for lump sum fixed price — Whether lump sum contract price adjustable for re-measurement of provisional quantities in Bill 9.5 — Parties’ conduct waiving strict application of ACP Rule 18 governing settlement offers and costs — Interest entitlement limited due to unreasonable delay in pursuing claim. In 1996 UDL and Yau Lee entered a sub-contract for structural steelwork. Disputes arose over adjustment of lump sum contract price where certain quantities were designated 'Provisional' in Bill 9.5. The Arbitrator found the lump sum price could be adjusted in respect of re-measured provisional quantities despite the contract being lump sum. The Arbitrator limited interest to 3 years owing to unreasonable delay by UDL in commencing arbitration. Regarding costs, the Arbitrator found that by their conduct the parties waived the strict application of ACP Rule 18, permitting consideration of a Calderbank offer from Yau Lee, resulting in UDL bearing costs from 22 May 2007. The Court found no obvious or serious error in the Arbitrator’s determinations and refused leave to appeal.
Legal issues: Adjustment of lump sum contract price for provisional quantities · Entitlement to interest and effect of unreasonable delay · Application of Rule 18 of ACP Rules and costs waiver
Outcome: Leave to appeal refused on all grounds; UDL’s Notices of Motion dismissed.
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