Defects Defective Work Contractor obliged to carry out work free of defects Failure to do so constitutes breach of contract Implied obligation to perform work in and workmanlike manner’ ‘proper Usually express obligations Clause 30.3 AS2124 – for debt is easier Clause 4.1(e) AS4300 – execute and complete the works ... so that ... when ‘... completed ... shall Be fit for their stated purposes Comply with all requirements of the Contract What is a defect? Standards Australia contracts do not define ‘defect’ Objective considerations shortcoming or failure; a fault, blemish, flaw, imperfection in a ‘a person or thing’ Must also have regard to nature and purpose of contract Example defect, shrinkage outside the tolerances permitted in the Project ‘...any Brief, omission or fault or failure to confirm with the requirement of the drawings and specifications and design documentation’ Fertile ground for disputes Must be determined in the circumstances of the specific contract/project Classification of Defects Construction/workmanship defects Failure to construct in accordance with plans and specification Design defects Failure to design the Works in the manner required by the Principal Failure to achieve for purpose’ obligation? ‘fitness Contractual Procedures AS2124 Clause 30.3 –
Defects Defective Work Contractor obliged to carry out work free of defects Failure to do so constitutes breach of contract Implied obligation to perform work in ‘proper and workmanlike manner’ Usually express obligations Clause 30.3 – AS2124 for debt is easier Clause 4.1(e) – AS4300 ‘... execute and complete the works ... so that ... when completed ... shall Be fit for their stated purposes Comply with all requirements of the Contract What is a defect? Standards Australia contracts do not define ‘defect’ Objective considerations ‘a shortcoming or failure; a fault, blemish, flaw, imperfection in a person or thing’ Must also have regard to nature and purpose of contract Example ‘...any defect, shrinkage outside the tolerances permitted in the Project Brief, omission or fault or failure to confirm with the requirement of the drawings and specifications and design documentation’ Fertile ground for disputes Must be determined in the circumstances of the specific contract/project Classification of Defects Construction/workmanship defects Failure to construct in accordance with plans and specification Design defects Failure to design the Works in the manner required by the Principal Failure to achieve ‘fitness for purpose’ obligation? Contractual Procedures AS2124 – Clause 30.3
Construction_Law.docx