Cases - Palermo Nominees Pty Ltd and Micro Bros Pty Ltd v Broad Construction Service Pty Ltd

Record details

Name

Palermo Nominees Pty Ltd and Micro Bros Pty Ltd v Broad Construction Service Pty Ltd

Date

[1999]

Citation

15 B&CL 20

Keywords

Contract administration

Summary

In this reported case from the courts of Western Australia, the claimant was the owner of a hotel and engaged the defendant as a project manager in relation to demolition works and the construction of a new service station and nightclub on the hotel site.

Upon practical completion of the nightclub in October 1994, it became apparent that the premises suffered from unfavourable acoustics and excessive reverberation. The claimant alleged that the defendant should have carried out an independent report into the internal acoustics of nightclub prior to its construction and brought proceedings in which it contended that the defendant was in breach of its express obligation to arrange and coordinate the works to ensure that the claimant's 'requirements and objectives' were achieved to the claimant's reasonable satisfaction.

The court held that, notwithstanding the fact that the defendant had engaged an architect, the expertise involved in ensuring that the internal acoustics of the nightclub were satisfactory for its intended use were beyond those to be expected of an ordinary architect and the defendant was thus in breach of its retainer for failing to procure an independent specialist report.