Construction contract law Essay Example | Topics and Well Written Essays - 3250 words

Construction contract law - Essay Example By this stage, the job had become quite extensive. It involved the demolition of the cold store and other buildings, and the construction of a workshop, a double inspection pit and a covered parking area. The overall job would require a great deal of demolition and drilling out of concrete and excavations, the construction of structural steel framing, cladding, extensive roofing and paving, the installation of equipment purchased by Clarke and the partial demolition, rebuilding and refurbishment of the office accommodation.Works progressed on a piecemeal basis with ACT submitting interim applications for payment during the course of the works. The works went on for a period of nearly two years, by which point ACT had been paid approximately  £1.3 million.At this point the parties have drifted apart. Later, ACT submitted to Clarke a "reconciliation statement" for its work. This showed that the value of the work calculated by ACT was of the order of  £1.5 million. This led to a dis pute and ACT commenced proceedings for the recovery of a claimed balance of approximately  £200,000.Analysis of court’s responseThe court initially interpreted on certain preliminary questions on existence of a contract, and if so, what were its terms as to payment, the scope of the work and the contract period? Clarke argued that there was an agreement between the parties that ACT would construct the job, including the supply and installation of the necessary workshop equipment, for a cost, which was to be not more than  £815,000.