C and v Engineering Pty Ltd v Metropolitan Demolitions Pty Ltd

The case of C and v Engineering Pty Ltd v Metropolitan Demolitions Pty Ltd involved a dispute between a contractor and a sub-contractor concerning the supply of steel for the development of three buildings. The primary issues were the nature of the agreement between the parties regarding the supply and fabrication of steel for one building, and the basis for labour and other charges for two buildings. The matter was heard in the Supreme Court of New South Wales.

The court had to determine whether there was a clear agreement regarding the scope of the sub-contractor's obligations in relation to the supply and fabrication of steel for one of the buildings. Additionally, the court needed to ascertain the basis for the labour charges and other costs for the two buildings, including whether these were governed by an express term or an implied term that the charges be reasonable. Another issue was whether there was an implied term that the costs incurred be properly incurred.

The court examined the informal dealings and communications between the parties, including emails and other correspondence. The court concluded that the sub-contractor was not obligated to fabricate the steel for one building but was required to supply it. The court found that while there was no express term setting out the basis for labour charges, an implied term existed that the charges be reasonable. The court further found that there was no implied term that the costs be properly incurred. The court awarded damages for the breach of contract.

The court ordered that the contractor pay the sub-contractor $162,314.77, representing the cost of supplying the steel for one building, and $24,900 in relation to the reasonable charges for two buildings. The court also awarded interest on these amounts from the date of the proceedings until the date of judgment.