Jennings Construction Ltd v Burgundy Royale Investments Pty Ltd

Jennings Construction Ltd (the builder) and Burgundy Royale Investments Pty Ltd (the owner) were parties to a building contract. The owner alleged that the builder had breached the contract by failing to complete the work by the stipulated date and by performing defective work. The builder sought to recover payment for work performed. The dispute came before the Supreme Court of New South Wales.

The primary legal issues before the court were whether the owner was entitled to terminate the contract due to the builder's alleged breaches, and if so, whether the builder was entitled to any payment for work performed up to the point of termination. Specifically, the court had to consider the effect of the builder's failure to meet the completion date and the implications of any defective work on the owner's right to terminate and the builder's right to payment.

Brennan J held that the owner was not entitled to terminate the contract. His Honour found that the owner had, by its conduct, waived the original completion date and had not subsequently fixed a new reasonable date for completion. Furthermore, the alleged defective work did not amount to a breach of a condition of the contract that would entitle the owner to terminate. Consequently, the builder was entitled to recover the value of the work performed under the contract.