Robertson Group (Construction) Ltd v. Amey-Miller (Edinburgh) Joint Venture & Ors [2005] ScotCS CSOH_60 (10 May 2005)

Robertson Group (Construction) Ltd v. Amey-Miller (Edinburgh) Joint Venture & Ors [2005] ScotCS CSOH_60 (10 May 2005)

The phrase 'all direct costs and directly incurred losses' in the temporary contract entitles the pursuers to recover reasonable sums for general corporate overheads and profit, provided these arise naturally from the works instructed under the temporary arrangements, and are within the authorised expenditure limits.

Citation
[2005] ScotCS CSOH_60
Parties
Pursuer: Robertson Group (Construction) Limited; First Defender: Amey-Miller (Edinburgh) Joint Venture; Second Defender: Amey Programme Management Limited; Third Defender: Miller Construction (UK) Limited
Jurisdiction
Scotland
Judgment Date
10 May 2005
Procedural Posture
Commercial Construction Contract Dispute / Interlocutory Judgment on Interpretation of Contract Terms
Outcome
Interpretation in favour of pursuers; case to proceed for further procedure based on this finding.
Legal Topics
Interpretation of Contract Terms, Recovery of Overheads and Profit, Remoteness of Loss, Cost Plus Contracts, Private Finance Initiative (pfi) Arrangements
Contract Law Construction Law Interpretation of Contract Terms Recovery of Overheads and Profit Remoteness of Loss Cost Plus Contracts Private Finance Initiative (pfi) Arrangements

Case Brief

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Parties

Robertson Group (Construction) Limited

Pursuer

Amey-Miller (Edinburgh) Joint Venture

First Defender

Amey Programme Management Limited

Second Defender

Miller Construction (UK) Limited

Third Defender

Procedural Posture

Commercial Construction Contract Dispute / Interlocutory Judgment on Interpretation of Contract Terms

Legal Issues

  1. 1 Whether 'all direct costs and directly incurred losses' includes general corporate overheads and profit under a temporary construction contract

Ratio Decidendi

The phrase 'all direct costs and directly incurred losses' in the temporary contract entitles the pursuers to recover reasonable sums for general corporate overheads and profit, provided these arise naturally from the works instructed under the temporary arrangements, and are within the authorised expenditure limits.

Court Disposition

Interpretation in favour of pursuers; case to proceed for further procedure based on this finding.

Orders

  • Case to be put out by order for further procedure in light of the court's finding on the interpretation of 'all direct costs and directly incurred losses'.