Wan v Daoud Building Group Pty Ltd; Daoud Building Group Pty Ltd v Wan [2024] NSWCATCD 39

Wan v Daoud Building Group Pty Ltd; Daoud Building Group Pty Ltd v Wan [2024] NSWCATCD 39

The owner is entitled to reimbursement of the variation payment because the variation was not effective (not in writing as required), quantum meruit does not apply as the works were within contract scope and owners lacked actual knowledge of variation as it occurred. The builder's price rise claim fails as no written agreement existed for variation and quantum meruit does not apply. Owners failed to prove loss for delay claim, as no evidence of lost rent or net profit was provided.

Parties
Applicant/cross Respondent: Chi Wai Stephen Wan; Applicant/cross Respondent: Kam Kwan Fung; Respondent/cross Applicant: Daoud Building Group Pty Ltd
Jurisdiction
Australia
Judgment Date
25 March 2024
Procedural Posture
Building Claim / Final Hearing and Judgment
Outcome
Applicants to pay respondent $2,317.00; both applications otherwise dismissed.
Legal Topics
Home Building, Contract Variations, Quantum Meruit, Assessment of Damages, Adequacy of Evidence of Loss
Building and Construction Consumer Law Home Building Contract Variations Quantum Meruit Assessment of Damages Adequacy of Evidence of Loss

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Parties

Chi Wai Stephen Wan

Applicant/cross Respondent

Kam Kwan Fung

Applicant/cross Respondent

Daoud Building Group Pty Ltd

Respondent/cross Applicant

Procedural Posture

Building Claim / Final Hearing and Judgment

Legal Issues

  1. 1 Whether owners are entitled to reimbursement of paid invoice #10418 (variation claim)
  2. 2 Whether builder is entitled to payment of invoice #10327 (price rise claim)
  3. 3 Whether owners are entitled to compensation for delay to building works (delay claim)

Ratio Decidendi

The owner is entitled to reimbursement of the variation payment because the variation was not effective (not in writing as required), quantum meruit does not apply as the works were within contract scope and owners lacked actual knowledge of variation as it occurred. The builder's price rise claim fails as no written agreement existed for variation and quantum meruit does not apply. Owners failed to prove loss for delay claim, as no evidence of lost rent or net profit was provided.

Court Disposition

Applicants to pay respondent $2,317.00; both applications otherwise dismissed.

Orders

  • On or before 21 April 2024 Chi Wai Stephen Wan and Kam Kwan Fung are to pay Daoud Building Group Pty Ltd the amount of $2,317.00.
  • Application 2023/00393744 is otherwise dismissed.