S&J Harris Building Services Pty Ltd v Jacques [2022] NSWCATCD 95

S&J Harris Building Services Pty Ltd v Jacques [2022] NSWCATCD 95

The owner, including through her interior designer, reduced work that was within the builder's broadly described contractual scope. Clause 14(e) therefore entitled the builder to compensation at 7.5% on the cost of reduced or omitted work, calculated on $293,900.81, and the builder was also entitled to contractual interest on the allowed unpaid amounts. The owner did not prove her $120,000 damages claim, but did establish or obtain admissions for limited defects, so the appropriate relief was a work order requiring rectification and access rather than a monetary award to the owner.

Jurisdiction
Australia
Judgment Date
01 June 2022
Procedural Posture
Home Building Proceedings Concerning a Cost Plus Contract Payment Claim and Defective Work Claim / Principal Judgment With Amended Orders
Outcome
Builder awarded $30,759.81 in HB 21/17092; builder ordered to carry out specified rectification work and owner ordered to provide access in HB 21/19049; leave to renew if rectification order not complied with.
Legal Topics
['costs Plus Contract' 'omission or Reduction of Work' 'amount Payable to Builder on Omitted Work' 'contractual Interest' 'residential Building Defects' 'statutory Warranties' 'work Orders']
['building and Construction' 'contract Law' 'consumer Law'] ['costs Plus Contract' 'omission or Reduction of Work' 'amount Payable to Builder on Omitted Work' 'contractual Interest' 'residential Building Defects' 'statutory Warranties' 'work Orders']

Case Brief

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Procedural Posture

Home Building Proceedings Concerning a Cost Plus Contract Payment Claim and Defective Work Claim / Principal Judgment With Amended Orders

Legal Issues

  1. 1 ['Whether the owner reduced work to be done by the builder within clause 14(e) of the cost plus contract.' 'What compensation was payable to the builder for reduced or omitted work.' 'Whether the builder was entitled to contractual interest on unpaid invoices.' 'Whether the owner proved claimed defective building work and loss.' 'Whether rectification work orders should be made for established defects.']

Ratio Decidendi

The owner, including through her interior designer, reduced work that was within the builder's broadly described contractual scope. Clause 14(e) therefore entitled the builder to compensation at 7.5% on the cost of reduced or omitted work, calculated on $293,900.81, and the builder was also entitled to contractual interest on the allowed unpaid amounts. The owner did not prove her $120,000 damages claim, but did establish or obtain admissions for limited defects, so the appropriate relief was a work order requiring rectification and access rather than a monetary award to the owner.

Court Disposition

Builder awarded $30,759.81 in HB 21/17092; builder ordered to carry out specified rectification work and owner ordered to provide access in HB 21/19049; leave to renew if rectification order not complied with.

Orders

  • ['In HB 21/17092 Theresa Jacques must pay S&J Harris Building Services Pty Ltd $30,759.81 immediately.' 'In HB 21/19049 S&J Harris Building Services Pty Ltd must carry out the work referred to at [132] and [133] of the Reasons in accordance with the terms therein stated.' 'In HB 21/19049 Theresa Jacques must provide...