This case has potential consequences for builders with respect
to receiving payment for works undertaken on behalf of tenants of
commercial buildings.
In 1997 Bowen Investments, owner of a unique commercial building
in Melbourne, discovered that its corporate tenant Tabcorp had
engaged its own architect, internal designer and contractors to
renovate the premises. The contractors jack-hammered and filled
with debris the building's foyer. The original foyer featured
San Francisco Green Granite and Sequence and Matched Crown Coat
American Cherry.
Tabcorp had agreed in the lease not to make any substantial
alteration or addition to the premises without the prior consent of
Bowen Investments. Tabcorp had also agreed in the lease to make
good any damage incurred to the premises. Bowen Investments had not
given prior consent to the alterations to the foyer, and Tabcorp
refused to make good the damage it caused. The estimated cost of
restoring the premises was $1.38
