Extra-Contractual Recoveries for Construction and Engineering Work

My book Extra-Contractual Recoveries for Construction and Engineering Work was published in May 2022. As its title suggests, it is concerned with legal routes available for contractors and subcontractors to obtain payment for their work other than those arising from the express words of their contracts. Whilst focusing particularly on the various jurisdictions in the UK and Australia, it also considers the position in other common law jurisdictions around the world.

It comes in 2 hardback volumes running to some 1300 pages in all.

The book is published by London Publishing Partnership in the UK[1]; more details of the book, and how to buy it, appear on their webpage. A collection of the published reviews of the book, and some other appraisals, is here.


The preface is as follows:


I have spent a fair proportion of my professional life as a lawyer collecting payment for contractors who have undertaken construction or engineering work, but who have not been paid for it adequately or at all.  Very often, the express terms of the contracts for that work have specified no means of recovery, and so it has been necessary to deploy legal arguments that are more subtle.  In doing so, I have helped my clients recover very substantial sums that would not otherwise have been recovered. I have also spent much time defending against such claims.

These legal approaches are not much taught in law schools, and are not very widely understood, although they are all there be found in the authorities.  They are certainly not to be found in contract documents: time after time I have seen cases where it would be possible to read the contract once, twice, or twenty times, and still have no clue at all about the lines of legal argument that have in fact enabled the contractor to get paid.

This book is written in an attempt to pull those threads together.

The first volume is a text on the law.  In the second volume I have extracted some selections from the cases and legislation that seem to be to be most germane, particularly but not exclusively from England and Australia, being the two countries which have generated the most law in this area, and are also (conveniently for me) the two places in which I have been qualified. Through this book, there are some highlight references to the law of some other common law jurisdictions.

It is traditional, when acknowledging at this point the assistance of others, to emphasise that those acknowledged are not responsible for errors, those being the errors of the author. In this case, this emphasis is even more necessary than usual. At a late stage in this work, I have prevailed on some very busy people to cast an eye over the text before publication. Whilst their time has been short, their observations have been especially valuable. I sincerely thank…

The table of contracts is thus:

Table of Contents


Preface. vi

Overall Structure. viii

More Detailed Table of Contents. ix

Abbreviations, Latin Tags etc. lxi

Tables. lxvii

Cases. lxvii

Statutes. lxxv

Chapter 1  – Introduction. 76

No 19th-century Codification. 80

Some highlight examples. 82

The International Perspective. 84

England & Wales. 85

Australia. 86

Terminology. 90

Cracking Open the Nut. 93

Why is the Problem so Common?. 94

The Attitude of Courts and Arbitrators. 99

A Check List. 102

How to Take a Medieval Castle. 106

Other Ingredients. 108

Chapter 2 – Implied terms. 110

Types of implication. 113

Terms implied as a matter of law.. 113

Terms implied as a matter of fact. 114

Principle 1: “reasonable and equitable”. 115

Principle 2: “business efficacy”. 116

Principle 3: “goes without saying”. 117

Principle 4: “capable of clear expression”. 117

Principle 5: “not contradict any express term”. 118

The Price for the Work. 120

No Agreement as to Price. 120

No Agreed Price for Varied Work. 122

Clauses where payment is “to be agreed”. 123

Payment before Completion. 125

Entire Contracts. 125

Interim payment. 127

Prevention and Implied Terms as to Co-Operation etc. 128

Implied Terms as to Access and Other Project Management Terms  129

Implied Obligations of co-operation and good faith. 130

The Rational Exercise of Contractual Powers – The Product Star and Braganza   133

Implied term to ensure certification. 140

Implied and Collateral Agreements. 142

Chapter 3 – Intermediate Agreements, Certifications, Etc. 144

Agreements. 145

Status of Intermediate Agreements. 146

Authority. 147

Consideration. 149

Economic Duress. 152

Over-certification. 156

Enforcement of certificate by arbitration. 157

Enforcement of certificate by litigation. 158

England. 158

Australia. 159

Enforcement of certificate by statutory demand. 160

Enforcement of certificate by adjudication. 160

Under-certification. 161

Disqualification. 165

Fraud or collusion. 166

Lack of Independence. 166

Unknown interests. 166

The modern place of disqualification. 168

Death. 168

Waiver. 168

Hindrance or Prevention. 168

Refusal 170

Breakdown of certification mechanism.. 171

Presumption of Review Powers by the Court. 171

  1. UK. 172

Pre-Crouch. 172

NRHA v Derek Crouch (1984). 173

Beaufort v Gilbert-Ash (1998). 175

Australia. 175

Checklist of Possible Routes to Recovery Without a Certificate. 176

Chapter 4 – Circumvention of Contractual Provisions. 178

Control of Unfair or Unconscionable Contract Terms. 180

The Law of Penalties. 180

Penalties – Different International  Approaches in Common Law and Equity  181

England. 181

Australia. 182

India. 183

Statutory Control 183

  1. UK. 183

Australia. 185

India. 186

Circumvention of Conditions Precedent to all Payment Rights. 188

No binding contract. 188

There is a contract. 189

Attempts to exclude Implied Terms – “Entire Agreement” Clauses. 191

Pay-When-Paid Clauses. 193

Statutory Control 193

  1. UK. 193

Australia. 193

Ireland. 194

Malaysia. 194

Singapore. 194

Common law and Equitable Control 194

When, not if. 195

Application to contractual progress claims only. 195

No Application to Quantum Meruit Claims. 196

Prevention. 196

The Need for clear words. 196

Pay-when-certified clauses. 197

  1. UK. 198

Circumvention of Cross Claims. 199

Statutory Control of Cross Claims. 199

Cross Claims for Delay. 200

Liquidated Damages Clauses. 200

Penalty Clause or Liquidated Damages?. 201

Bonus arrangements. 203

Lane Rental Arrangements. 205

Prevention and Time at Large. 206

Examples of Time being set at large. 209

Is time set at large by a mere failure to certify?. 210

Is Time Set at Large when the Contractor fails to give Notice of Delay?  212

Contracting out of the Principle?. 216

The Consequence of Time being at Large. 222

Establishing an Entitlement to Extension of Time. 222

Cross claims for Delay against Subcontractors. 223

Cross Claims for Defects. 224

Circumvention of Notice Provisions. 228

Types of Provisions. 230

Standard Provisions. 230

Queen of Hearts Clauses. 230

The Arsenal of Circumventions. 232

Contractual Limitation Periods. 236

Intra-Contractual Approaches. 237

Reading Down. 237

Presumption that Notice Provisions are not Conditions Precedent  238

Ingredients of an Effective Condition Precedent. 239

If Clauses. 242

Other Clauses. 243

Constructive Notice?. 244

Variation of the Terms of the Contract. 245

Notice Provisions that are Penal 246

Notice Provisions as Forfeiture Clauses. 251

Breakdown of Contractual Machinery for Notices. 251

Ambiguity as to What Notice is Required. 253

Impossibility. 254

Unconscionable Reliance on Contractual Terms in Australia. 256

Estoppel, Waiver and Forbearance. 257

Estoppel by representation. 258

Estoppel by convention. 258

Estoppel by acquiescence. 259

Equitable estoppel 260

Waiver. 264

Forbearance. 265

Examples of Estoppel/Waiver in Relation to Notice Provisions. 266

1985: Rees & Kirby v Swansea City Council 266

1990: Update Constructions v Rozelle Child Care. 267

2009: BMD Major Projects Pty Ltd v Victorian Urban Development Authority  267

2012: Alstom v Yokogawa (No 7). 268

2013: Miccon Hire Pty Ltd (in liquidation) v Birla Mt Gordon Pty Ltd   269

2021: Valmont Interiors v Giorgio Armani (No 2). 269

Relief from Forfeiture. 269

Statutory Extension of Time. 269

Quantum meruit. 272

Damages. 273

Adjudication. 273

Certification and Peninsula Balmain v Abigroup. 273

The UK – JCT 63. 274

Australia – AS2124. 274

Examples of Treatment of Notice Clauses. 275

England. 275

Scotland. 276

Australia. 277

Hong Kong. 279

South Africa. 280

Trinidad and Tobago. 281

Breakdown of Contractual Machinery. 283

Overview.. 283

What Constitutes a Mechanism.. 284

What Constitutes a Breakdown. 285

Failure to nominate a third party. 286

Failure by a Third Party to Act at all 289

Failure by a Third Party to Act as Required. 289

Failure by a party to co-operate. 291

Other Examples. 292

The Substituted Machinery. 293

Procedural Considerations. 293

The Consequence of Breakdown. 294

Fraud. 294

Unconscionability and Relief From Forfeiture. 296

Forfeiture Clauses and their Enforceability. 298

The Contrast with Party Autonomy Considerations. 299

Limits to the Jurisdiction. 299

Are Liquidated Damages Clauses Forfeiture Clauses?. 303

Are Time-Barring Notice Provisions Forfeiture Clauses?. 303

The Availability of Relief from Forfeiture. 304

Relief from Forfeiture Australia. 308

Australia: Prohibition of Unconscionable Conduct by the ACL. 310

Section 20 of the ACL. 311

Section 21 of the ACL. 312

Remedies for Unconscionable Conduct Under the ACL. 316

Chapter 5 – Damages for Breach of Contract. 317

Overview.. 318

General Principles. 321

The Underlying Principle. 321

Causation. 322

Novus actus interveniens. 323

Remoteness and foreseeability. 323

Damages for Loss of a Chance. 324

Mitigation. 324

Damages for Breach of a Term as to Access etc. 327

Damages for Owner’s Breach of a Term as to Certification or Ascertainment  329

Breach of a Term as to Dispute Resolution. 333

Damages for breach of Contractual Machinery Obligation. 334

Damages for breach of Implied Terms. 335

Damages for Breach of Good Faith. 335

Interest by way of damages. 337

England & Wales. 337

Scotland. 337

Australia. 337

Sharia. 338

Contractual Exclusion of Damages Claims. 339

Exclusive Remedies Clauses. 339

Quantum of Damages Claims. 341

Hudson etc Formula Calculations. 342

The Hudson Formula. 342

The Emden Formula. 343

Chapter 6 – Misrepresentation. 347

Overview.. 348

The Paradigm Case – Site Conditions. 351

Another Recurrent Case – Programme and Access. 355

The Bigger they Come, the Harder they Fall 357

The Common Law Position. 359

Rescission. 359

The Bars to Rescission. 359

No possible restiutio in integrum.. 359

Other Bars to Rescission. 360

Deceit. 361

The Misrepresentation Acts (UK and other jurisdictions). 363

The Nature of a Misrepresentation. 364

Puff, Implication and Opinion. 365

Silence and the Duty to Speak. 368

Reliance. 371

Examples of Misrepresentation. 373

Defences. 375

Damages for Misrepresentation. 376

The “No Transaction” basis. 376

The Adjusted Price Basis. 378

The Fraudulent Measure. 379

Overheads and Profit. 381

The Impact of a Volatile Market. 381

Damages in Lieu of Rescission. 382

Summary of Misrepresentation. 385

Misleading or Deceptive Conduct (Australia). 385

Overview.. 385

Abigroup v Sydney Catchment Authority. 386

Liability. 389

Inadvertently Misleading Conduct. 389

Reliance. 390

The Non-reliance provisions. 391

Quantum.. 392

Summary of the result in the case. 393

Misrepresentations as Misleading or Deceptive Conduct. 394

Conduct. 394

Intention to Mislead or Deceive. 395

Capacity to perform.. 396

In Trade or Commerce. 397

Contracting Out – the “Henjo principle”. 397

Reliance, Loss and Quantum.. 398

Chapter 7 – Quantum Meruit. 403

Overview.. 404

Historical Background. 405

The Modern Law – Two Types of Quantum Meruit. 407

Quantum Meruit as a Right of Restitution. 408

Contractual Quantum meruit. 409

Statutory Bars to Contractual Payment. 411

The Effect of the Bars on Quantum Meruit. 411

New South Wales. 411

Queensland. 411

South Australia. 412

Western Australia. 412

Recovery back by the Owner. 413

Quantum Meruit Alongside a Contract. 414

Quantum Meruit in Cases of Dramatic Change?. 416

Skipping Links in a Contractual Claim?. 416

Piercing the Corporate Veil 417

The Quantum of Quantum Meruit. 418

The Quantum of a Restitutionary Quantum Meruit. 418

Starting points. 418

The Benedetti v Sawiris Principles. 420

The New Zealand Approach. 422

Cost to the Contractor. 423

Adjustment for defective work or inefficient working. 423

Adjustment for tardy work. 424

Profit. 426

Benefit to the Owner. 427

The price agreed as part of an incomplete bargain. 430

The hypothetical negotiated price. 431

Subjective Devaluation in Construction Cases. 432

The Quantum of a Contractual Quantum Meruit. 433

Chapter 8 – Negligence and Other Torts. 435

Negligent Misstatement and Negligent Misrepresentation. 438

The Original Hedley Byrne Principle Extended. 442

Claims by Contractors against Professionals for Negligent Pre-Tender Information and Design   446

England & Wales. 448

Australia. 448

Canada. 449

Claims by Contractors against Subcontractors for Negligent Work Method   450

Claims by Contractors against Professionals for Negligent or Unfair Under-Certification   451

Are certifiers subject to a duty of care to contractors to certify fairly or carefully?  453

Pacific v Baxter. 455

A suggested approach. 460

Claims by Owners against Professionals for Negligent Over-Certification   461

Claims by Owners against Professionals for Negligent Design. 463

Can the duty be excluded?. 464

Claims against individuals. 464

Trespass and other Torts. 466

Trespass. 466

Fraud. 467

The Tort of Conspiracy. 467

Chapter 9 – Repudiation, Frustration and Other Doctrines. 470

Repudiation. 471

The General Principle. 473

Repudiatory Breach. 474

Non-payment. 476

Anticipatory breach. 478

The First Election – Acceptance of Repudiation. 479

The Second Election – Contract Rates plus Profit, or Quantum Meruit  480

Post-repudiation Quantum Meruit – Contractual or Restitutionary?  481

The Modern Commentaries. Error! Bookmark not defined.

Keating on Construction Contracts 10th Edition. Error! Bookmark not defined.

Hudson. Error! Bookmark not defined.

Bailey, Construction Law 2nd Edition. Error! Bookmark not defined.

Frustration. 484

When Frustration occurs. 484

The Consequence of Frustration. 485

Impossibility. 487

Rectification. 489

Quasi-Rectification in Cases of Absurdity. 490

Chapter 10 – Statutory Recoveries. 492

Statutory Rights to Payment. 494

  1. UK. 495

Housing Grants, Construction and Regeneration Act 1996. 495

The Default Provision. 496

The Adjudication Provision. 498

Recovery of Overpayments. 498

Supply of Goods and Services Act 1982. 499

Australia. 499

East Coast Model 500

Progress Payments – a Parallel Statutory Entitlement. 500

When the Statutory Right to Progress Payment Arises. 502

The Amount of the Statutory Right to Progress Payment. 503

Disapplication of Mechanisms. 504

Enforcement of Progress Payment Rights. 510

The West Coast Model 518

Ireland. 518

Malaysia. 519

New Zealand. 519

Singapore. 519

Interest pursuant to Statute. 519

  1. UK. 519

Chapter 11 – Bills of Exchange, Bonds, Liens, Charges Etc. 521

Cheques as bills of exchange. 523

Consideration. 524

Fraud. 524

Duress. 525

Illegality. 525

Cheques sent in full and final satisfaction. 525

On-demand performance guarantees. 526

Traditional Guarantees and Conditional Bonds. 528

Liens. 530

South Australia. 530

Project Bank Accounts. 531

Quistclose Trusts. 534

Chapter 12 – Contracting out of Extra-Contractual Liability. 535

All-Embracing Notice Provisions. 536

Risk Allocation. 537

Particular Exclusions of Common Law Principles. 538

No time at large. 538

Contracting Out of Liability for Misrepresentation. 542

Anti-Avoidance at Common Law.. 542

Non-reliance clauses giving rise to estoppels. 543

Anti-Avoidance Under the Acts. 546

Other Statutory Rights. 547

  1. UK. 547

Housing Grants, Construction and Regeneration Act 1996. 547

Australia. 548

The Security of Payment Legislation. 548

Chapter 13 – Adjudication and Other Recovery Techniques. 559

Adjudication. 561

Types of adjudication. 563

“Pay Now, Argue Later”. 564

The Legislation. 567

  1. UK. 568

Power to Open Up Certificates. 572

Enforcement of Adjudicator’s Decisions. 573

Severance. 574

Stay of Execution. 574

Australia. 576

The East Coast Model of Adjudication. 576

Pay now, argue later. 579

Certification and Previous Adjudications. 579

Inimical and Other Void Provisions. 579

Set-off. 579

Enforcement of Adjudicators’ Determinations. 581

Challenge. 581

The West Coast Model 582

Other Jurisdictions. 583

Ireland. 583

Isle of Man. 583

Malaysia. 583

Singapore. 584

Consensual Adjudication. 585

Expert Determination. 586

Arbitration. 589

Chapter 14 – Procurement and Management. 590

Tender Strategies for Owners. 591

Tender Strategies for Contractors. 593

The Terms of the Contract. 594

Preserving Extra-contractual Opportunities Pre-contract. 596

Contract Administration – Following the Prescribed Path. 597

Contract Administration – Off Piste. 598

An Effective Contract – Better Late than Never?. 599

Choosing the forum.. 601

Negotiation between the parties themselves. 604

Mediation. 604

Review Boards. 604

Adjudication. 605

Expert determination. 605

Arbitration. 605

Litigation. 605

Envoi 606

Index. 609

Appendix I – Extracts from Statutory Provisions. 613

Arbitration Act 1996 (UK). 617

Bills of Exchange Act 1882 (UK). 619

Builders Registration Act 1939  (WA). 620

Prohibition against unregistered builders carrying on business. 620

Building and Construction Industry Security of Payment Act 1999 (NSW)  622

Building and Construction Industry Security of Payment Act 2009 (South Australia)  626

Part 1 – Preliminary. 628

Part 2-Rights to progress payments. 634

Part 3-Procedure for recovering progress payments. 637

Division 1-Payment claims and payment schedules. 637

Division 2-Adjudication of disputes. 640

Division 3-Claimant’s right to suspend construction work. 648

Division 4-General 648

Part 4-Miscellaneous. 650

Building Work Contractors Act 1995 (SA). 651

Civil Law (Wrongs) Act 2002 (Australian Capital Territory). 652

Chapter 13        Misrepresentation. 652

172        Definitions—ch 13. 652

In this chapter: 652

court includes an arbitrator. 652

non-fraudulent misrepresentation means a misrepresentation that was not made fraudulently. 652

173        Removal of certain bars to rescission for misrepresentation   652

(1)         This section applies if—… 652

(a)         a person enters into a contract after a misrepresentation is made to the person; and   652

(b)         the person would be entitled to rescind the contract without claiming fraud if 1 or more of the following matters (former bars) did not apply: 652

(i)      the misrepresentation has become a term of the contract; 652

(ii)         the contract has been performed; 652

(iii)        a conveyance, transfer or other document has been registered under a territory law or a law of the Commonwealth, a State or another Territory because of the contract. 652

(2)         The person may rescind the contract even though 1 or more of the former bars apply. 653

(3)         This section is subject to the following sections: 653

174        Damages for misrepresentation. 653

176        Exclusion clauses—misrepresentation. 654

Competition and Consumer Act 2010 (Australia). 655

Schedule 2 – The Australian Consumer Law.. 657

Chapter 1 – Introduction. 657

2  Definitions. 657

Chapter 2. 659

Part 2-1 Misleading or Deceptive Conduct. 659

Part 2-2 — Unconscionable conduct. 659

Chapter 5. 663

Part 5-2 Remedies. 663

Contract and Commercial Law Act 2017 (New Zealand). 669

34         Remedy provided in contract 669

35          Damages for misrepresentation. 669

Home Building Act 1989 (New South Wales). 670

7 Form of contracts (other than small jobs). 670

10 Enforceability of contracts and other rights. 671

92 Contract work must be insured. 671

94 Effect of failure to insure residential building work. 672

Housing Grants, Construction and Regeneration Act 1996 (UK). 673

Late Payment of Commercial Debts (Interest) Act 1998. 683

Part I Statutory Interest on Qualifying Debts. 683

1 Statutory interest. 683

2 Contracts to which Act applies. 683

4 Period for which statutory interest runs. 684

5 Remission of statutory interest. Error! Bookmark not defined.

6 Rate of statutory interest. 687

Part II Contract terms relating to late payment of qualifying debts. 687

7 Purpose of Part II 687

8 Circumstances where statutory interest may be ousted or varied   688

9 Meaning of “substantial remedy”. 688

10 Interpretation of Part II Error! Bookmark not defined.

Part III General and Supplementary. Error! Bookmark not defined.

11 Treatment of advance payments of the contract price. Error! Bookmark not defined.

12 Conflict of laws. Error! Bookmark not defined.

13 Assignments, etc. Error! Bookmark not defined.

14 Contract terms relating to the date for payment of the contract price   689

17 Short title, commencement and extent. Error! Bookmark not defined.

Law Reform (Frustrated Contracts) 1943 (UK). 690

1        Adjustment of rights and liabilities of parties to frustrated contracts. 690

2 Provision as to application of this Act. 691

Misrepresentation Act 1967 (UK). 693

Removal of certain bars to rescission for innocent misrepresentation   693

Damages for misrepresentation. 693

Avoidance of provision excluding liability for misrepresentation   694

Short title, commencement and extent. 694

Misrepresentation Act 1972 (South Australia). 695

Part 1—Preliminary. 695

1—Short title. 695

Part 2—Criminal sanctions against misrepresentation in certain commercial transactions  695

4—Misrepresentation made in the course of a trade or business  695

Part 3—Expansion of remedies available at common law and in equity for misrepresentation   697

5—Interpretation. 697

6—Removal of certain bars to rescission. 697

7—Damages for misrepresentation. 697

8—Exclusion clauses. 698

Sale of Goods Act 1979 (UK). 700

The Scheme for Construction Contracts. 701


Notice of Intention to seek Adjudication. 701

Powers of the adjudicator. 702

Adjudicator’s decision. 703

Effects of the decision. 703


Entitlement to and amount of stage payments. 703

Dates for payment. 704

Final date for payment. 705

Payment notice. 705

Notice of intention to pay less than the notified sum.. 706

Prohibition of conditional payment provisions. 706

Interpretation. 706

Senior Courts Act 1981 (UK). 708

35A Power of High Court to award interest on debts and damages. 708

(1)         Subject to rules of court, in proceedings (whenever instituted) before the High Court for the recovery of a debt or damages there may be included in any sum for which judgment is given simple interest, at such rate as the court thinks fit or as rules of court may provide, on all or any part of the debt or damages in respect of which judgment is given, or payment is made before judgment, for all or any part of the period between the date when the cause of action arose and—… 708

(a)         in the case of any sum paid before judgment, the date of the payment; and   708

(b)         in the case of the sum for which judgment is given, the date of the judgment. 708

(2)         In relation to a judgment given for damages for personal injuries or death…   708

(3)         Subject to rules of court, where—… 708

(a)         there are proceedings (whenever instituted) before the High Court for the recovery of a debt; and   708

(b)         the defendant pays the whole debt to the plaintiff (otherwise than in pursuance of a judgment in the proceedings), 709

the defendant shall be liable to pay the plaintiff simple interest at such rate as the court thinks fit or as rules of court may provide on all or any part of the debt for all or any part of the period between the date when the cause of action arose and the date of the payment. 709

(4)         Interest in respect of a debt shall not be awarded under this section for a period during which, for whatever reason, interest on the debt already runs. 709

(5)         Without prejudice to the generality of section 84, rules of court may provide for a rate of interest by reference to the rate specified in section 17 of the Judgments Act 1838 as that section has effect from time to time or by reference to a rate for which any other enactment provides. 709

(6)         Interest under this section may be calculated at different rates in respect of different periods. 709

(7)         In this section “plaintiff” means the person seeking the debt or damages and “defendant” means the person from whom the plaintiff seeks the debt or damages and “personal injuries” includes any disease and any impairment of a person’s physical or mental condition. 709

(8)         Nothing in this section affects the damages recoverable for the dishonour of a bill of exchange.]  710

Supply of Goods and Services Act 1982 (UK). 711

Statute of Frauds 1677 (UK). 712

Reasons for passing this Act. 712

Trade Practices Act 1974 (Australia). 713

Section 4(2). 713

Section 52 – Misleading or deceptive conduct. 713

Section 82 – Actions for damages. 714

Queensland Building and Construction Commission Act 1991. 716

42 Unlawful carrying out of building work. 716

Unfair Contract Terms Act 1977. 717

3 Liability arising in contract. 717

11 The “reasonableness” test. 717

Schedule 2. 718

Appendix II – Extracts from Cases. 720

Abacus v Davenport. 729

[2003] NSWSC 1027. 729

McDougall J. 729

Abigroup v Sydney Catchment Authority. 731

The First Instance Decision to adopt the Referee’s Report; [2003] NSWSC 634  731

Adoption Overturned on Appeal; [2004] NSWCA 270. 736

The Slip Rule Correction; [2004] NSWCA 459. 752

The Substantive Judgment on Liability; [2005] NSWSC 662. 753

Agreed issues. 753

First issue. 755

Conclusion on construction of representation. 756

Conclusion on the first issue. 756

Second issue. 756

Third issue. 757

Fourth issue. 762

Fifth issue. 762

The referee’s approach. 763

The “correct” representation. 764

No contract or alternative contract. 765

Alternative analysis:  no contract case. 766

Sixth and seventh Issues. 768

Conclusions. 768

The Appeal from the substantive judgment; [2006] NSWCA 282. 772

Background facts. 772

Reliance and Causation. 773

The law relating to causation. 775

Conclusion on causation. 775

Damages. 777

Conclusion on damages. 779

Conclusion on the appeal 780

The Damages Judgment; [2007] NSWSC 220. 781

Factual background. 781

The evidence. 781

Conclusion on the “what if” question. 783

The Application for Special Leave; [2007] HCATrans 146. 784

Alstom v Yokogawa (No 7). 786

4       Interpretation of the EC&I contract: General Principles. 787

10.2      The implied duty to co-operate. 790

10.3      The implied obligation not to prevent or hinder YDRML’s performance of the EC&I contract  791

11          An implied term to provide Alstom’s updated programs in a form that could be integrated with YDRML’s program.. 795

11.1      The nature of the project. 795

19          YDRML’s EOT claims. 796

Alstom Signalling v Jarvis Facilities. 802

The Secondary Cases. 806

Anderson v Tuapeka County Council 808

Stout, CJ. 808

Williams, J. 809

Edwards, J. 809

Martin J. 809

Andrews v Australia and New Zealand Banking Group Limited. 810

French CJ, Gummow, Crennan, Kiefel And Bell JJ. 810

Barkhuizen v Napier. 813

Ngcobo J. 813

Madala J, Nkabinde J, Skweyiya J, Van der Westhuizen J and Yacoob J  820

Moseneke DCJ: 820

O’Regan J: 821

Mokgoro J. 822

Sachs J: 822

Langa CJ: 825

Baulderstone Hornibrook v Qantas Airways. 826

Beaufort Developments (NI) v Gilbert-Ash NI 829

Lord Lloyd of Berwick. 829

Lord Hoffman. 830

Benedetti v Sawiris. 833

Lord Clarke (with whom Lord Kerr and Lord Wilson agree). 833

The legal principles. 833

Market value and subjective devaluation. 834

Market value and subjective revaluation. 838

The legal principles – summary. 838

Lord Reed. 839

The measure of restitution where a person has been unjustly enriched   839

The Authorities. 840

The approach of the Court of Appeal 840

Lord Neuberger. 841

The prima facie position. 841

Bernhard’s Rugby Landscapes v Stockley Park. 844

BG Checo v British Columbia Hydro and Power. 847

Extracts from the original finding of Cohen J of fraudulent misrepresentation: 849

Extracts from the Judgment of the British Columbia Court of Appeal 850

Hinkson J (Lambert, Toy and Cumming JJ agreeing). 850

Background. 850

The Meaning of “Clearing”. 851

Fraud. 851

Damages for Negligent Misrepresentation. 851

Breach of contract. 852

Extracts from the Judgment of the Supreme Court of Canada. 852

La Forest, McLachlin, L’Heureux-Dubé and Gonthier JJ. 852

The Claim in Tort. 853

BMD Major Projects v Victorian Urban Development Authority. 857

The First Instance decision. 860

(c) Estoppel 860

The Court of Appeal 861

Estoppel 863

Time Bar. 864

Braganza v BP Shipping Ltd. 866

Lady Hale (with whom Lord Kerr agreed). 866

Lord Hodge: (with whom Lord Kerr agrees). 869

Lord Neuberger: (with whom Lord Wilson agrees) (dissenting). 870

Bremer Handelsgesellschaft v Vanden Avenne. 871

Lord Wilberforce. 873

Viscount Dilhorne. 874

Lord Salmon. 874

Lord Russell of Killowen. 875

Lord Keith of Kinkel 875

Booker Industries Pty Ltd v Wilson Parking (Qld) Pty Ltd. 876

Extracts from the Judgments. 877


Uncertainty as to Fixing of Rental 880

Brighton Australia v Multiplex Constructions. 888

British Steel v Cleveland Bridge. 892

BSkyB v HP Enterprise Services. 893

D: The Law Of Deceit And Negligent Misrepresentation. 894

The Law on Deceit. 894

The making of a representation. 896

The falsity of the representation. 897

Knowledge or recklessness as to the truth. 897

Intention that the other party should act upon the representation   899

Detrimental reliance of representation. 899

The law of negligent misstatement or misrepresentation. 900

E: Issues of Construction of Documents. 911

The Entire Agreement clause. 911

F: Claims For Negligent Misstatement Or Misrepresentation. 912

Claims under the Misrepresentation Act 1967. 913

Misrepresentation as to Time. 913

J: Causation. 914


Cavendish v El Makdessi, ParkingEye Ltd v Beavis. 918

Lords Neuberger and Sumption (Lord Carnwath agreeing). 918

The law in relation to penalties. 918

Equitable origins. 919

Lord Mance. 926

Lord Hodge. 927

Lord Clarke. 928

Lord Toulson. 928

CCECC  v Might Foundate. 930

  1. Extension of time. 930
  2. Time at large. 933

CFW Architects (A Firm) v Cowlin Construction Ltd. 936

Chandler v Boswell 939

Greer LJ (Greene LJ and Mackinnon J agreeing). 939

Chaplin v Hicks. 940

Vaughan Williams LJ. 940

Farwell LJ. 941

City Inn v Shepherd Construction Ltd. 943

Clerk LJ. 943

Introduction. 943

The contract. 944

The penalty clause point (answer 8(i)). 945

Whether failure by the contractor to take action under clause 13.8.1 constitutes a breach of contract  945

(b) Whether clause 13.8.5 imposes a penalty. 947

Clough Engineering Ltd v Oil and Natural Gas Corporation. 948

Constructional principles relating to performance bank guarantees  948

Commercial Management v Mitchell Design. 950

Edwards-Stuart J. 950

Cook’s Construction v SFS 007.298.633. 953

Keane JA.. 953

Costain Civil Engineering and Tarmac v Zanen Dredging & Contracting  957

HHJ David Wilcox. 957

Courtney & Fairbairn Ltd v Tolaini Brothers (Hotels) Ltd. 959

Crown House v Amec. 960

Slade LJ. 960

The grounds of appeal 960

Stocker LJ. 962

Bingham LJ. 962

Davis Contractors v Fareham Urban DC. 964

Lord Radcliffe. 964

Decor Ceilings v Cox Constructions (No 2). 966

Besanko J. 967

Dodd v Churton. 970

Drake and Scull v Higgs and Hill 973

His Honour Judge Fox-Andrews QC. 973

Dunlop Pneumatic Tyre Co Ltd v. New Garage and Motor Co Ltd. 975

Lord Dunedin. 975

Durabella Limited v J. Jarvis & Sons Limited. 978

DVP Engineering Pty Ltd v Concrete Constructions Group Ltd. 981

The First Instance Decision; Gillard J. 981

The Court of Appeal 983

Tadgell JA.. 983

Kenny JA.. 985

Edgeworth Construction v N.D. Lea. 986

Sopinka, Gonthier, Cory, McLachlin, Iacobucci and Major JJ. 987

Education 4 Ayrshire Ltd v South Ayrshire Council 989

Lord Glennie. 989

The Notice provisions of the contract. 990

Discussion. 992

  1. Clarke & Sons v ACT Construction. 995

Ward, Laws and Keene LJJ. 995

Electrix v Fletcher Construction (No 2). 998

Palmer J. 998

Summary. 998

Approach to the amount deserved. 1001

Expert evidence. 1002

Essex County Council v UBB Waste (Essex) Ltd. 1004

Esso v Mardon. 1011

Denning MR. 1012

Ormrod LJ. 1015

Shaw LJ. 1016

Etlis & Anor v New Age Constructions (NSW) Pty Ltd & Anor. 1017

Handley JA.. 1018

Hodgson JA.. 1022

Brownie AJA: 1023

F & G Sykes (Wessex) Limited v Fine Fare Limited. 1024

Field v Dettman. 1025

First Tower Trustees Ltd v CDS (Superstores International) Ltd. 1027

Lord Justice Lewison. 1027

Introduction and background. 1027

The judgment. 1027

Does section 3 apply to clauses 5.8 and 12.1?. 1028

Lord Justice Leggatt. 1029

Sir Colin Rimer. 1031

Fitzroy Robinson Ltd v Mentmore Towers Ltd. 1033

Floods of Queensferry Ltd v Shand Construction Ltd. 1040

Galliford Try Infrastructure Ltd (formerly Morrison Construction Ltd and another) v Mott Macdonald Ltd   1043

Akenhead J. 1044

Introduction. 1044

The Pile Bracing Issue-Decision. 1047

Hospital Façade Issue….. 1051

Gaymark Investments v Walter Construction Group. 1053

Bailey J. 1053

GEC Marconi v BHP Information Technology. 1056

Gilbert-Ash v Modern Engineering. 1058

Lord Reid. 1058

Lord Morris of Borth-Y-Gest. 1060

Viscount Dilhorne. 1060

Lord Salmon. 1061

Good Living v Kingsmede. 1062

Allsop CJ: 1062

Some introductory considerations. 1062

Besanko J: 1065

Jagot J: 1067

Hawl-Mac v Campbell River. 1069

Wallace J. 1069

Holme v Guppy. 1076

Hoenig v Isaacs. 1078

Denning LJ. 1078

Hungerfords v Walker. 1081

Mason CJ and Wilson J. 1082

Brennan and Deane JJ: 1085

Hurley v McDonald’s Australia Ltd. 1087

The Full Court (Heery, Drummond and Emmett JJ). 1087

Iezzi Constructions v Watkins Pacific. 1089

Fitzgerald P. 1089

McPherson JA.. 1090

Thomas J. 1091

Ipstar Australia v APS Satellite. 1093

Bathurst CJ. 1093

Beazley P. 1093

Leeming JA.. 1093

J F Finnegan v Sheffield City Council 1095

J Jarvis and Sons Ltd v Castle Wharf Developments Ltd and others. 1101

Peter Gibson LJ. 1101

(1) Gleeds’s Duty of Care. 1101

John Barker v London Portman Hotel 1103

Claim for £20,000 under the acceleration agreement. 1109

John Goss Projects v Leighton Construction. 1110

Kailash Nath Associates v Delhi Development Authority. 1112

Koch Hightex GmbH v New Millennium Experience Company Limited   1113

Lodder v Slowey. 1118

Lords Macnaghten, Davey, Robertson and Lindley. 1118

Lusty v Finsbury Securities. 1119

Balcombe LJ, Sir David Croom-Johnson. 1119

Mann v Paterson Constructions Pty Ltd. 1121

Kiefel CJ, Bell and Keane JJ. 1123

1        The appellants entered into a contract with the respondent for the construction by the respondent of two townhouses on land owned by the appellants.  The parties fell into dispute in relation to the works.  The respondent claimed that the appellants had repudiated the contract, and purported to terminate the contract by accepting that repudiation.  The respondent then claimed that it was entitled to recover payment for its work, including variations, upon a quantum meruit.  The respondent’s claim was upheld by the Court of Appeal of the Supreme Court of Victoria. 1123

2        Pursuant to a grant of special leave to appeal, the appellants now challenge the decision of the Court of Appeal on the following grounds: 1123

“[1]       The Court of Appeal erred in holding that the respondent builder, having terminated a major domestic building contract upon the repudiation of the contract by the [appellants], was entitled to sue on a quantum meruit for the works carried out by it. 1123

[2]         Alternatively, if the respondent was entitled to sue on a quantum meruit, the Court of Appeal erred in finding that the price of the contract did not operate as a ceiling on the amount claimable under such a quantum meruit claim. 1123

[3]         The Court of Appeal erred in allowing the respondent to recover on a quantum meruit basis for variations to the works carried out by the respondent, because it incorrectly found that s 38 of the Domestic Building Contracts Act 1995 (Vic) did not apply to a quantum meruit claim for variations to works under a domestic building contract.”. 1123

  1. 3. 1124

4        In our respectful opinion, the issue posed by the first ground of appeal should be resolved in the affirmative, in favour of the appellants.  As a result, it is unnecessary to address the second ground of appeal.  In relation to the issue raised by the third ground of appeal, we agree with the conclusion and reasons of Nettle, Gordon and Edelman JJ and have nothing useful to add….. 1124

53          It may be that in some cases justice will not be done without a restitutionary claim.  Different considerations may apply in cases where advance payments are sought to be recovered by restitutionary claims for money paid, although it may be that the law of contract adequately provides for such cases.  “There will generally be no need to have recourse to a remedy in restitution” where a claim in contract is available.  In the present case, there is no good reason to consider that damages for breach of contract would fail to meet the justice of the case such that a restitutionary claim for quantum meruit should be available.  It is not necessary to consider the position in other contexts or with respect to other restitutionary claims as the present case is concerned only with a claim for remuneration for work and labour done under a contract terminated for repudiation or breach. 1124

Gageler J. 1124

Category (2):  work for which the Builder has accrued a contractual right to payment  1126

Nettle, Gordon and Edelman JJ. 1126

Minerology v Sino Iron (No 6). 1131

Minister for Commerce v Contrax Plumbing and Ors. 1134

Hodgson JA.. 1134

Morrison-Knudsen v Commonwealth of Australia. 1136

Barwick CJ. 1137

Gibbs J (Owen and Walsh JJ agreeing). 1138

Lachhani v. Destination Canada (UK) Limited. 1141

Mr Recorder Reese QC. 1141

Laserbore Ltd v Morrison Biggs Wall Ltd. 1143

His Honour Judge Bowsher QC. 1143

Liebe v Molloy. 1148

Lim Chin San Contractors Pte Ltd v LW Infrastructure Pte Ltd. 1152

London Borough of Merton v Stanley Hugh Leach Ltd. 1154

Preliminary Issue No 1. 1154

Preliminary Issue No 5. 1156

Preliminary Issue No 14. 1157

Preliminary Issue No 15. 1159

Mamidoil-Jetoil Greek Petroleum Company SA v Okta Crude Oil Refinery AD   1160

Marks and Spencer v BNP Paribas. 1165

Massford (HK) Ltd v Wah Seng General Contractors Ltd. 1169

Hon Rogers VP: 1169

Merit Process Engineering Ltd v Balfour Beatty Engineering Services (HY) Ltd   1173

Melville Dundas Ltd & Ors v. George Wimpey UK Ltd & Ors. 1175

Miccon Hire Pty Ltd (in liquidation) v Birla Mt Gordon Pty Ltd. 1178

Michael Salliss v Calil 1180

Mid Essex Hospital Services NHS Trust v Compass Group UK and Ireland Ltd (t/a Medirest)  1182

Lord Justice Jackson. 1183

Lord Justice Lewison. 1187

Lord Justice Beatson. 1188

Midland Expressway v Carillion (No 2). 1189

Jackson J. 1189

Morris v Highland Spring Ltd. 1193

Multiplex Constructions (UK) Ltd v Honeywell Control Systems Ltd (No. 2)  1198

NH International (Caribbean) Limited v National Insurance Property Development Company Limited (Trinidad and Tobago). 1200

Lord Neuberger. 1200

North Midland Building Ltd v Cyden Homes Ltd. 1203

Lord Justice Coulson. 1203

5.3 The Prevention Principle. 1204

Obrascon v AG for Gibraltar. 1206

Akenhead J. 1206

Opron Construction Co Ltd v Alberta. 1211

Introduction. 1213

Findings of Fact. 1215

The Design Changes Between Stage I and Stage II 1216

  1. Misstatements by Omission. 1218

(i) Did Something Occur During the Negotiations or Performance of the Contract to Impose on the Defendant a Duty of Disclosure?. 1219

  1. Breach of an Implied Covenant of Good Faith. 1225

Ottawa Northern and Western Railway Co. v Dominion Bridge Co. 1230

Davies J. 1230

Pacific v Baxter. 1232

Purchas LJ. 1232

Ralph Gibson J. 1236

Russell LJ. 1238

Paciocco v Australia and New Zealand Banking Group Limited. 1241

French CJ. 1242

Kiefel J. 1242

Keane J. 1244

Nettle J (in dissent). 1245

Pagnan S.p.A. v. Feed Products Ltd. 1247

Panamena – Frederick Leyland & Co Ltd v Compania Europea Navegacion Limitada  1248

Court of Appeal 1248

Goddard LJ. 1248

House of Lords. 1249

Lord Thankerton. 1249

Pavey & Matthews v Paul 1251

Peak Construction (Liverpool) Limited v McKinney Foundations Limited   1282

Peninsula Balmain v Abigroup. 1286

Perini Corporation v Commonwealth of Australia. 1294

Macfarlan J. 1294

Photo Production Ltd v Securicor Ltd. 1297

Plaza West Pty Ltd v Simon’s Earthworks (NSW) Pty Ltd & Anor. 1300

Allsop P. 1300

Giles JA: 1301

Hodgson JA: 1301

Probuild Constructions (Aust) Pty Ltd v DDI Group Pty Ltd. 1302

Beazley ACJ. 1302

McColl JA.. 1302

The prevention principle. 1302

Macfarlan JA.. 1308

R & D Construction Group Ltd v. Hallam Land Management Ltd. 1309

Renard Constructions (ME) Pty Ltd v Minister for Public Works. 1311

Riyad Bank & Ors v Ahli United Bank (UK) Plc. 1313

Ringrow v BP Australia. 1316

Gleeson CJH, Gummow, Kirby, Hayne, Callinan And Heydon JJ. 1316

Royscot Trust v Rogerson. 1318

Ruttle Plant Hire v Sec of State EFRA.. 1321

S Pearson & Son Ltd v Dublin Corporation. 1322

Lord Loreburn L.C. 1322

Earl of Halsbury. 1323

Lord Ashbourne. 1326

Lord James of Hereford. 1326

Lord Atkinson. 1327

Sempra Metals v Inland Revenue. 1329

Lord Hope of Craighead. 1329

Lord Nicholls of Birkenhead. 1330

Shui On Construction Company v Shui Kay Company Ltd. 1333

Six Carpenters’ Case. 1334

Smith v Land and House Property Corporation. 1335

Smith and Smith Glass v Winstone Architectural Cladding Systems. 1336

Master Towle. 1336

SMK Cabinets v Hili Modern Electrics Pty Ltd. 1340

Brooking J. 1340

Sopov v Kane (No 2). 1345

Maxwell P, Kellam JA and Whelan AJA.. 1345

Availability of a quantum meruit claim.. 1345

  1. The right to claim quantum meruit. 1346
  2. Is the contract price a ceiling?. 1347
  3. Is the contract price the best evidence of value?. 1347

Profit and overhead. 1348

Delay costs. 1349

Spandeck Engineering (S) Pte Ltd v Defence Science & Technology Agency  1351

Chan Sek Keong CJ (delivering the grounds of decision of the court): 1351

Policy considerations. 1355

(3) Application to the present case. 1356

Policy considerations. 1356

Our decision. 1357

Squibb Group Ltd v London Pleasure Gardens Ltd & Anor. 1358

Steria Ltd v Sigma Wireless Communications Ltd. 1360

Judge Stephen Davies. 1360

Is the notice requirement a condition precedent?. 1360

Sutcliffe v Thackrah. 1363

Lord Reid. 1363

Lord Morris of Borth-y-Gest. 1363

Temloc v Errill Properties. 1365

Croom-Johnson LJ. 1365

Tersons Ltd v Stevenage Development Corporation. 1367

Willmer LJ. 1368

Upjohn LJ. 1369

Pearson LJ. 1369

Thorn v. The Mayor and Commonality of London. 1371

Todd Pohokura Limited v Shell Exploration NZ Limited. 1372

Implied terms in law.. 1372

Obligation to act honestly, and to have regard to interests of other venturers?  1374

Trollope & Colls Limited v North West Metropolitan Regional Hospital Board   1376

Re Westham Dredging Company Pty Limited v Woodside Petroleum Development Pty Limited   Error! Bookmark not defined.

Uber Builders and Developers Pty Ltd v MIFA Pty Ltd. 1378

Update Constructions v Rozelle Child Care. 1381

Kirby P. 1382

Samuels JA.. 1382

Priestley JA.. 1382

Vettese v Kemp. 1384

Duggan J. 1384

Introduction. 1384

The claim for contribution or indemnity. 1387

Conclusion. 1387

Debelle J (dissenting on contribution). 1388

Bleby J. 1389

Walton Construction v Illawarra Hotel 1390

McDougall J. 1391

Wells v Army and Navy. 1394

Wright J at first instance: 1394

On appeal, per Vaughan Williams LJ: 1395

Wessex Regional Health Authority v HLM Design. 1397

His Honour Judge Fox-Andrews QC. 1397

William Hare v Shepherd. 1408

Lord Justice WALLER: 1408

Lord Justice RIX: 1411


William Sindall v. Cambridgeshire CC. 1412

Evans LJ. 1412

Woodlands Oak v Conwell 1416

Sir Anthony May. 1416

Lord Justice Richards. 1418

Lord Justice Hughes. 1418

Wong v Ratesharp. 1419

Yam Seng v International Trade Corporation. 1423

Leggatt J. 1423

Yew Sang Hong v Hong Kong Housing Authority. 1427

Yuen JA: 1427

Reyes J: 1427

  1. Introduction. 1427
  2. Discussion. 1428
  3. Restitution. 1428
  4. Trust. 1431
  5. Implied contract. 1431

III. Conclusion. 1432

Xu v Jinhong. 1432

The Home Building Act Issue. 1433






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