Piper v Hookham Constructions Pty Ltd - [2014] QCAT 215

CITATION:

Piper v Hookham Constructions Pty Ltd [2014] QCAT 215

PARTIES:	Darryl Piper (Applicant)
v
Hookham Constructions Pty Ltd (Respondent)

APPLICATION NUMBER:

BDL121-13

MATTER TYPE:

Building matters

HEARING DATE:

15 April 2014

HEARD AT:

Brisbane

DECISION OF:

Senior Member Oliver

DELIVERED ON:

21 May 2014

DELIVERED AT:

Brisbane

ORDERS MADE:

1. Darryl Piper pay to Hookham Constructions Pty Ltd the sum of $95,516.63 by 30 June 2014.

CATCHWORDS:

BUILDING CONTRACT – TERMS AND EXTENSION OF TIME – TERMINATION – where contract for the construction of three units on a single block of land – where contract stipulated an amount for delay damages – where amount inserted by applicant – whether the parties agreed to the daily rate – where contract provided for specific construction period for the three units to be built together – where agreement to split the project to build one unit first and then two units – where original time for construction exceeded the time in the contract – whether the parties agreed to an extension of time for the build – where payment schedule changed to reflect the change in the construction arrangements – where applicant sought to terminate the contract for substantial breach – whether the respondent in substantial breach - whether respondent entitled to balance monies owed under the contract –whether the respondent entitled to be paid prime cost items for food and accommodation when not included in the “inclusions” to the contract.

APPEARANCES and REPRESENTATION (if any):

APPLICANT:

Mr Piper in person

RESPONDENT:

Mr Hookham in person

REASONS FOR DECISION

Mr Piper owned a house at 4 Leichhardt Drive, Moranbah in the State of Queensland. On 13 May 2011, he entered into a contract with Hookham Constructions Pty Ltd for the construction of three units on the land. The existing house was to be demolished to make way for the three new units.
Mr Piper was living in the house when the contract was signed. He would use the house when in Moranbah for work. The total contract price for the three units was $904,813 inclusive of GST. The contract provided that the works must reach practical completion with 210 days. The work commenced on 11 July 2011 and the actual practical completion date was either 6 February 2013 or 20 February 2013. This was well in excess of the original 210 days provided for in the contract.
When the project was completed, Hookham Constructions delivered an invoice for the final payment under the contract for $87,278. Mr Piper does not dispute that this is the final payment. Despite that, Mr Piper did not pay the final payment. Instead, he filed an application in the Tribunal for $87,278.12 on 15 May 2013, which, according to the statement of claim attached to the application, he claimed was owed $85,868.08 for what might be described as late completion damages under item 11 of the contract for $76,000, plus interest of $9,578.08 and the filing fee. The basis of this claim was that the work was…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

Continue reading Piper v Hookham Constructions Pty Ltd

Details

AGLC: Piper v Hookham Constructions Pty Ltd [2014] QCAT 215
Case: [2014] QCAT 215
Decision Date

CaseChat Overview and Summary

In this matter, the applicant, Mr Piper, brought an application against the respondent, Hookham Constructions Pty Ltd, seeking damages for late completion of three units on a single block of land. The respondent counter-claimed for the final payment under the contract. The applicant did not pay the final payment and the parties found themselves in a stand-off situation. The issues to be decided were whether the parties agreed to the daily rate of late completion damages, whether the time for completion was extended by agreement, whether the works reached practical completion, whether the applicant lawfully terminated the contract, and whether the respondent was in substantial breach of the contract. The court found that the parties did not agree to the daily rate of late completion damages. The court found that the time for completion was extended by agreement. The court found that the works reached practical completion. The court found that the applicant was not entitled to terminate the contract and that the respondent was not in substantial breach of the contract. The court found that the respondent was entitled to the final payment under the contract, as well as a reduced claim for provisional sums and prime cost items and the QLeave claim. The court dismissed the applicant's claim and allowed the respondent's counter-claim in the sum of $95,516.63. The applicant is ordered to pay the respondent the sum of $95,516.63 by 30 June 2014.

Orders