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ARTICLE · 28 FEBRUARY 2023

Recovering Damages When A Contractor Is Terminated

Vincent Young
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When a contractor has failed to complete their contracted works and is terminated, the principal will have to engage another contractor to finish the job and then claim the costs...

AustraliaReal Estate and Construction
Vincent Young
Vincent Young

Case note – Heavy Plant Leasing Pty Ltd (in liquidation) v McConnell Dowell Constructors (Aust) Pty Ltd (No2)

When a contractor has failed to complete their contracted works and is terminated, the principal will have to engage another contractor to finish the job and then claim the costs to complete the works from the defaulting contractor. It should be noted that not all of the principal's costs can be recovered.

The Supreme Court in its recent decision in Heavy Plant Leasing Pty Ltd (in liquidation) v McConnell Dowell Constructors (Aust) Pty Ltd (No2) [2022] NSWSC 1775 (Heavy Plant) shed some light on the computation of the costs that are recoverable from a defaulting contractor.

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