Adjudication Claim & The Claimant Case Study – Law Assignment Help

Assignment Task

Task 

Adjudication Claim

Section 36 of the Construction Contracts Act 2002

Introduction
1. The Claimant, JC is a company in the business of performing civil drainage works for residential and commercial projects in Christchurch.
2. The Respondent is GL – a general building contractor.
3. Unless stated otherwise, all amounts specified are excluding GST.

Relief sought
4. The Claimant seeks the following relief from the Tribunal:

a. A determination that the Respondent is liable to pay the Claimant the sum of $500,000.00 including GST or such other sum as the adjudicator deems fit;

b. Interest on the above sum at the rate of 5 percent per annum; and

c. A determination that the Respondent is liable to pay all the costs of this adjudication proceedings and the adjudicator’s costs.
Grounds for relief sought

5. The facts are set out in Mr Grex’s statement.

6. In sum, the Claimant was subcontracted by the Respondent to perform drainage work at 120 seaside view, Christchurch and 36 Morning Avenue, Christchurch (respectively, Seaside and Morning).

7. Work on both projects were completed on 26 November 2019 and 23 February 2020 respectively.

8. Invoices were issued and payments were received on both projects. However, there were outstanding payments.

9. On 3 March 2020, the Claimant issued two payment claims to the Respondent, one being for Seaside and the other for Morning. 

10. In respect of the project at Seaside, the payment claim recorded that the final contract sum was $450,000.00. Having regard to the payments made, the claimed amount was $250,000 (including GST).

11. In respect of the project at Morning, the payment claim recorded that the final contract sum was $250,000. Having regard to the payments made, the claimed amount was $150,000 (including GST).

12. On 4 March 2020, the Respondent responded to the payment claims with several interim payment schedules. 

13. On 30 March 2020, the Respondent responded to the payment claims with final payment schedules.

14. Having regard to the final payment schedules:

a. In respect of the project at Seaside, the Respondent agreed that the total contract sum was $450,000. However, the Respondent applied a credit of $250,000 purportedly as compensation for 10 items of alleged defective works which was listed in a table.

b. In respect of the project at Morning, the Respondent agreed that the total contract sum was $250,000.00. However, the Respondent applied a credit of $150,000 purportedly as compensation for 7 items of alleged defective works which was listed in a table.

15. As the Respondent agrees with the Claimant in respect of the total contract sum of both projects, it is submitted that the only issue for determination is whether the Respondent is entitled to the credits stated in its final payment schedules.
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17. Additionally, the Claimant submits that:

a. The Respondent only issued one defect notice to the Claimant which occurred on 25 November 2019. This was remediated by the Claimant at its cost.
b. No defect notices were issued by the Respondent for the tabled defects.
c. The Respondent’s own employees (both former and current) have stated that the tabled defects are not the Claimant’s responsibility:
i. This is confirmed in a recording and statement of Ms Wis; and
ii. The recorded conversation between Mr Grex and Ms Tingtang where she admits that the wrongly laid pipe at Morning is the Respondent’s fault.
d. The Respondent has not provided any evidence of its cost to remediate the tabled defects.
e. If the tabled defects were genuine and the Claimant was at fault (which is denied), the Claimant would have remedied the defects at its own cost.

Claim for additional compensation

18. The Claimant is also claiming $100,000 as compensation for all the delays, prejudice and other losses caused by the Respondent’s breach of their obligation. that sum is an approximate figure of the compensation.

Adjudicator’s fees and expenses

19. The Claimant seeks payment of all its legal fees for this adjudication pursuant to section 56 of the Construction Contracts Act 2002.
20. The Claimant also submits that the Respondent is liable for all the adjudicator’s costs and expenses pursuant to section 56 of the Construction Contracts Act 2002 as the Respondent’s allegations are without substantial merit.

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