Kyren Pty Ltd v Built Projects Pty Ltd

The case of Kyren Pty Ltd v Built Projects Pty Ltd concerns an appeal by Kyren against an order of the Magistrate, which mandated payment of unpaid invoices issued by Built Projects. The parties had entered into an arrangement whereby Built Projects was engaged by Kyren as a project manager for specific building works. The dispute centred on whether the agreement between the parties was an estimate or a fixed quote, whether Built Projects breached the agreement by not completing the work, and whether Kyren was entitled to set off the costs. The court was tasked with determining these legal issues to resolve the financial dispute between the parties.

The court first considered whether the agreement between the parties was an estimate or a fixed quote. It found that the facsimile from Built Projects to Kyren, which detailed the materials, labour, and costs, was an estimate rather than a fixed quote. The court relied on the language used in the document, which referred to an "estimate of material and labour" and requested Kyren to sign below to confirm agreement. This language indicated that the document was not a binding contract but rather a preliminary assessment of costs. Consequently, Built Projects was not in breach by failing to complete the work as per the estimate. The court also addressed the issue of set-off, ruling that Kyren was not entitled to set off because they had not proven they had to pay more for a different contractor to complete the work.

The appeal was dismissed by the court, upholding the Magistrate's decision. The court found that the terms of the relevant rule appropriately applied, encouraging overall settlement of cases. The court rejected Kyren's argument that the rule should not apply because there was no proper basis for offering any payment into court before judgment. The court emphasised that the rule was intended to promote settlement and compromise, which often lead to settlements. The court concluded that the appeal should be dismissed, leaving the original judgment in place.