KING SHING ENGINEERING (HK) CO LTD v. VINSON ENGINEERING LTD

KING SHING ENGINEERING (HK) CO LTD v. VINSON ENGINEERING LTD

The court held that practical site conduct constituted a waiver of strict written site-instruction requirements under the subcontract so that Kin Shing was authorised to carry out variations; the change from concealed to surface conduits was a substantial variation; valuation of variations was adopted largely on the plaintiff's QS (Mr Wong) producing total variation value $7,129,899.90; after receipts and deductions Vinson owes Kin Shing HKD 1,258,840.80; Kin Shing's departure was at Vinson's direction so no repudiatory breach and Vinson's counterclaim fails.

Citation
KING SHING ENGINEERING (HK) CO LTD v. VINSON ENGINEERING LTD
Parties
Plaintiff: KING SHING ENGINEERING (H.K.) CO., LTD.; Defendant: VINSON ENGINEERING LTD.
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
25 May 2006
Case Number
HCCT108/2003
Procedural Posture
Construction and Arbitration Proceedings / Judgment
Outcome
Judgment for Plaintiff KING SHING ENGINEERING (H.K.) CO., LTD. in the sum of HKD 1,258,840.80; Defendant VINSON ENGINEERING LTD.'s counterclaim dismissed; costs to Plaintiff (order nisi).
Legal Topics
Variation of Contract, Site Instructions, Payment and Interim Payments, Valuation of Variations, Repudiation and Termination, Costs and Interest
Source Language
EN
Contract Law Construction Law Commercial Law Arbitration Procedure Variation of Contract Site Instructions Payment and Interim Payments Valuation of Variations +2 more

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Parties

KING SHING ENGINEERING (H.K.) CO., LTD.

Plaintiff

VINSON ENGINEERING LTD.

Defendant

Procedural Posture

Construction and Arbitration Proceedings / Judgment

Legal Issues

  1. 1 What constituted the sub-contract and its variation procedures
  2. 2 Whether oral/site instructions amounted to authorisation for variations despite General Condition 3.2
  3. 3 Whether change from concealed to surface conduits was a contract variation

Ratio Decidendi

The court held that practical site conduct constituted a waiver of strict written site-instruction requirements under the subcontract so that Kin Shing was authorised to carry out variations; the change from concealed to surface conduits was a substantial variation; valuation of variations was adopted largely on the plaintiff's QS (Mr Wong) producing total variation value $7,129,899.90; after receipts and deductions Vinson owes Kin Shing HKD 1,258,840.80; Kin Shing's departure was at Vinson's direction so no repudiatory breach and Vinson's counterclaim fails.

Court Disposition

Judgment for Plaintiff KING SHING ENGINEERING (H.K.) CO., LTD. in the sum of HKD 1,258,840.80; Defendant VINSON ENGINEERING LTD.'s counterclaim dismissed; costs to Plaintiff (order nisi).

Orders

  • Judgment for plaintiff in the amount of HKD 1,258,840.80
  • Interest on HKD 1,258,840.80 from 22 December 2003 until date of judgment at 1% over Hong Kong prime, thereafter interest at judgment rate