Cases - Trustees of Stratfield Saye Estate v AHL Construction Ltd (CIP)
Record details
- Name
- Trustees of Stratfield Saye Estate v AHL Construction Ltd (CIP)
- Date
- (2004)
- Citation
- EWHC 3286 (TCC)
- Legislation
- Keywords
- Contract - costs plus with agreed rates - cancellation of contract - variations - whether the employer was entitled to cancel the contract - whether the employer was entitled to issue instructions to omit works
- Summary
-
The claimant estate owned a derelict property. It entered into a contract with a local builder to make the building weathertight. The works could only be generally described and an agreement was reached on a costs-plus basis, with agreed rates. AHL duly set up on site and started work, although one week later the estate cancelled the project. AHL commenced a number of adjudications, the third of which sought compensation for cancellation of the project. These losses were awarded. In the course of giving judgment in respect of the enforceability of the third adjudication award, the Court considered whether there was a contract for a defined scope of work. Approving the principles laid down in Abbey, the Court held that the employer was fully entitled to give instructions which would vary the details set out on the drawings or the works described in the site minutes. However, the employer's power to omit works was subject to a clear limit. AHL had been employed to carry out the works which would convert the derelict property into a building which was weathertight. The employer had no power to issue omission instructions which would detract from or change this fundamental characteristic of the works.