15-12-2024
Background
In July 2017, Mr. and Mrs. A engaged a contractor to undertake an extension and internal renovations at their residential property. The project was governed by a JCT Building Contract for a Homeowner/Occupier who has not appointed a consultant to oversee the work (2015).
The Challenge
The project faced significant delays, with completion extending 30 weeks beyond the agreed deadline. This caused considerable inconvenience for Mr. and Mrs. A, who had anticipated timely completion.
In June 2018, a dispute arose over a lengthy snagging list and concerns regarding defective workmanship. The contractor countered by asserting that Mr. and Mrs. A had instructed additional works, for which he claimed separate payment.
In October 2018, Mr. and Mrs. A terminated the contract due to ongoing issues. Five years later, in September 2023, an expert report was commissioned to assess the remaining defects. The report identified a long list of defects and snagging issues, which were costed to determine the value of the outstanding work.
Issues Encountered
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Delays: Completion was delayed by 30 weeks, far exceeding the contract timeline.
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Defective Workmanship: Numerous areas of substandard work required professional assessment and remediation.
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Snagging List: Persistent unresolved issues prolonged the dispute.
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Additional Works: The contractor claimed entitlement to additional payment for instructions outside the contract.
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Contract Termination: The ongoing issues led to the termination of the contract.
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Expert Assessment: The 2023 joint expert report quantified the defects, providing a basis for determining the costs of rectification. The contractor refused to accept the findings in the Experts Report.
Resolution
Mr. and Mrs. A sought professional advice to:
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Review the JCT contract, including the validity of the additional works claim.
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Analyse the expert report and use it as evidence in negotiations or legal proceedings.
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Develop a strategy for pursuing the contractor for compensation or rectification of defects.
Outcome
The expert report provided the foundation for Mr. and Mrs. A to quantify the cost of outstanding works and negotiate with the contractor or initiate legal proceedings. Due to the contractor’s rejection of the Expert Report, the matter proceeded to adjudication. The adjudication decision was in favour of Mr & Mrs A with a significant sum being awarded.
The case shows the benefits of having an adjudication provision within a residential contract and the merits of a Joint Expert Report to enable matters to be determined.
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