Unreasonable Or Disproportionate Rectification Scope – Where Do Courts Draw The Line?

Where defective construction work requires rectification and the rectification work is carried out by the Principal, the Principal is entitled to recover the cost of those rectification works in the form of damages.¹ This article considers the extent of the damages recoverable by a Principal.

How does a Principal recover their costs for rectification works?

A Principal can recover its costs of rectification through mechanisms within the contract, such as contractual set off, or outside of the contract through equitable set-off, or common law damages.

How far do damages for rectification costs really go?

At law, the Principal must show the rectification works were reasonable and necessary if it wishes to recover its damage. What is reasonable and necessary is a question of fact – it differs in each case. The extent of what can be recovered is costs over and above the contract price that are incurred by the Principal in order to get the works to the point of