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ARTICLE · 19 FEBRUARY 2009

Are Guaranteed Maximum Price Contracts Guaranteed?

DLA Piper Australia
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In “Auburn Council & Anor v Michael Davies Associates Pty Ltd” [2008] NSWCA 286, a claim that there had been misleading and deceptive conduct in relation to the guaranteed maximum price for a construction contract failed because the Court found that the clause in question was incomplete and uncertain.

AustraliaReal Estate and Construction
Tim Poisel
Tim Poisel
David Jury
David Jury

In Auburn Council & Anor v Michael Davies Associates Pty Ltd [2008] NSWCA 286, a claim that there had been misleading and deceptive conduct in relation to the guaranteed maximum price for a construction contract failed because the Court found that the clause in question was incomplete and uncertain.

The Facts

Auburn Council (Council) and the New South Wales Police Service (Police) entered into a joint venture to redevelop the Council's Civic Centre. The redevelopment was intended to provide the Council with an administration building, library and multi-purpose community centre, and the Police with premises for a Local Area Command Centre, a car park and commercial office space.

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