A Win(d) for Fitness for Purpose

The UK Supreme Court has delivered its verdict on the long-running dispute over foundation issues at the Robin Rigg offshore wind farm. The 174MW wind farm, which is positioned between Scotland and England, experienced issues shortly after completion by Danish contractor MT Højgaard. The contract expressly required the foundations to have a lifetime of 20…

Are your estimates accurate?

John Green, founder and director of the Building Disputes Tribunal, a building and construction dispute resolution service provider in New Zealand, has spoken out in a recent article about the unfair and ‘draconian’ nature of many residential construction contracts. In his opinion, residential contracts are skewed in favour of builders for two main reasons: The contracts…

‘On demand’ no more

We often come across the sentiment that ‘on demand’ bonds provide an absolute entitlement to security, no questions asked. It is becoming clearer and clearer that this is no longer the case. Occasionally, a Beneficiary will attempt to place a call on the bond even though the Contractor is not strictly in default of the…

Court reinforces law on incorporation of terms

This blog post was written by Peter Fernando, a senior associate specialising in commercial contracts and information technology law. In an earlier blog we discussed a case where liability limitations were incorporated into a contract via a signed document that was referred to in that document. In a judgment released in May 2016 the Court of…

Developer back-tracking over budget blow-out – VH Five SPV Limited v Kimble Contracting Limited

  Building company Kimble Contracting Limited entered into a fixed price agreement with property developer VH Five SPV Limited. As expected, the parties agreed the timing of payment claims, when the principal was to issue its payment schedules, and thereafter when payment of the scheduled amount would occur. Unusually in this contract, those ‘timetable’ terms…

Arbitration or Summary Judgment?

In a recent High Court case, Teak Construction Limited v Andrew Brands Limited [2015] NZHC 2312, Associate Judge J P Doogue granted an application to dismiss summary judgment proceedings on the grounds that the Court had no jurisdiction as the parties had agreed to submit disputes to arbitration by the terms of their contract (NZS…