Cases - Tony Cox (Dismantlers) v Jim 5 Ltd

Record details

Name

Tony Cox (Dismantlers) v Jim 5 Ltd

Date

(1997)

Citation

13 Const LJ 209

Keywords

Contracts - construction contracts - lump sum contracts - VAT - custom and practice in the construction industry - contract between members of the construction industry - whether the price stated in a construction contract between two members of the construction industry included VAT

Summary

The claimant was a demolition specialist that had agreed to transfer land to the defendant builders and to carry out infrastructure works, for which they were to be paid £800,000 apportioned between different phases of the work. The agreement was silent as to VAT. However, VAT was payable by the defendant because it was held that there was a custom and practice within the building industry ('notorious, certain and reasonable'), in which both parties to the contract operated, that prices are quoted ex-VAT. Franks & Collingwood v Gates was distinguished as it did not relate to a custom between those in the construction industry, but between a builder and a private individual.