2 South West Building & Construction SOUTH WEST
Autumn 2012
BUILDING & CONSTRUCTION
Tavistock Newspapers Ltd, 14 Brook Street, Tavistock, Devon, PL19 0HE. Tel: 01822 613666 Fax: 01822 618222
INSIDE THIS ISSUE
■ Aspects of construction - Page 6 ■ Knowles - Page 7 ■ RM Services - Page 12 ■ Frost Builders - Page 16 ■ Environment Topics - Page 20 ■ Austen Knapman - Page 26 ■ Quarries and stone - Page 30 ■ Surveyors - Page 34 ■ CIC column - Page 39
CAPTION FOR FRONT PAGE PICTURES: News and information from the businesses and organisations on the front cover is featured in this issue of South West Building & Construction magazine.
Quote of the month
‘
I was born with my moustache and, no, I’ve never been tempted to shave it off - Lord Winston
STEPHEN HOMER
A reasonable time
Stephen Homer, a former chairman of the CIC South West (Devon & Cornwall), discusses a recent court case.
THE case of Baht and others v Masshouse Developments Ltd has highlighted the fact that, albeit on a case by case basis, when the contractor’s obligation is to complete the works in a reasonable time, what is ‘reasonable time’ is quantifiable primarily by the conduct of the parties.
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EDITORIAL Editor: Paul White
Main contributor: Andrew Townsend ADVERTISING:
Judith Jewell Tel/Fax 01837 658941 E-mail
judithjewell@btinternet.com
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The majority of construction contracts contain, or should contain, a completion date for the works that are being undertaken. Should the contract be silent as to a completion date or should the employer prevent completion by the completion date without the right for an extension then the only requirement will be for the works to be completed ‘within a reasonable time’. Failure to deliver the project within a reasonable time will then constitute a breach of contract by the contractor. In this case Baht and others (the ‘Purchasers’) bought apartments off plan from Masshouse. Masshouse employed a contractor to carry out the works and this contractor went into administration in October 2008. Masshouse then considered an alternative scheme that would have allowed them to have sold the development as a hotel instead, and informed the Purchasers. It was not until mid-January 2010 that Masshouse employed an alternative contractor and the works recommenced.
In February/March 2010 the Purchasers believed that the
development had already taken too long and as a result served notices upon Masshouse informing them that they believe a repudiatory breach of the contract in failing to complete in a reasonable time had occurred and as such demanded the return of their deposits. Masshouse refused to return the deposits and went on to complete the works in May 2011 and consequently served notices to complete on the Purchasers. The Purchasers declined and Masshouse said that it would therefore exercise its contractual right to rescind the contracts and as such the Purchasers would lose their deposits. Unsurprisingly, the Purchasers sued Masshouse to recover the deposits.
The court, in essence, found that Masshouse had not proceeded in reasonable time. And it was held that the Purchasers were entitled to treat Masshouse’s conduct as repudiation of the contracts. The result being that the Purchasers were entitled to the return of their deposits.
In conclusion, whilst each case is decided upon its own merits, it is clear that when trying to ascertain what constitutes reasonable time the conduct of the parties will be considered. If you have any questions arising from this article, I can be contacted via email at
s.homer@ashfords.co.uk. Follow on Twitter: @Ashfords_Build
South West Building & Construction Magazine
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Visit:
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DISCLAIMER: The CIC SW will not accept any responsibility for any loss occasional to any person acting or refraining from action as a result of the material included in this publication.
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