Ignoring a Contractors mistake?
A case not that long ago Traditional Structures Limited (TSL) v H W Construction Limited (HWL) heard in the construction and technology courts made me think about clients understanding, This case can reflect the same as to a client and contractor relationship.
In this case the sub-contractor mistakenly omitted the price of roof cladding from the contract and the contractor failed to notify the sub-contractor of this mistake and as a consequence benefited from it. The sub-contractor brought a claim for rectification of the contract, on the ground of unilateral mistake, and a claim for a reasonable price for the cladding works.
Essentially Contractor (HWL) wrote to the sub contractor (TSL) for a price to supply and fit of steelwork and cladding, the sub contractor returned a tender for steelwork only for circ £30,000 and the contractor placed the order with the sub contractor for supply and fit of steelwork and cladding for circ £30,000 which the sub contractor claimed was just for the steelwork, which was indentified as the only item priced on sub contractors quotation. Communications passed between sub contractor and contractor to remedy this error, which failed and the sub contractor sought adjudication in this matter.
The court ruled in favour of the sub contractor (TSL) with the following statement (abbreviated) “It held that an honest and reasonable man (MD, HWL) would have made such an enquiry in the circumstances of this case. The court further and/or in the alternative held, that the Managing Director had shut his eyes to the obvious, the obvious being that the price quoted was self-evidently a price that related only to structural steelwork, and that the Claimant had not included a separate price for the cladding”
In this difficult financial climate, clients should be even more careful about ensuring clarity from contractors quotes, if it’s appears competitive (cheap), enquirer why and record and contractors response prior to appointment.
At Vast Group we believe in honest tendering.
Full particulars of this case can be read by clicking on this link
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