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ARTICLE · 02 APRIL 2021

Beware: Finalise the terms of your Construction Contracts

The case is a lesson on when a Court will stop you recovering payment if there is no final agreement on contract terms.

AustraliaReal Estate and Construction

In a recent decision of C & V Engineering Pty Ltd v Hamilton & Marino Builders Pty Ltd [2020] NSWCA 103, the New South Wales Court of Appeal has illustrated that it may construe a commercial contract by reference to its "commercial purpose". The decision has important and far reaching implications for those involved in the Building & Construction industry and is a lesson on when a Court will stop you from recovering payment where there is no final agreement on the terms of a contract.

Background

Hamilton and Marino Builders Pty Ltd (Builder) was the Builder contracted to develop a unit complex in Mascot (Project). The Builder reached out to C & V Engineering Pty Ltd (Supplier), requesting the provision of metal joiners for the Project. All negotiations between the parties occurred by way of email correspondence.

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