In Dura (Aust) Constructions Pty Ltd v Hue Boutique Living Pty Ltd (No 3) [2012] VSC 99 the Victorian Supreme Court has recently provided guidance on both the required content of show cause notices under construction contracts and what a Principal must consider when evaluating whether cause has been shown by a Contractor responding to such a notice.
Facts
Hue Boutique Living Pty Ltd (Hue), the Principal, engaged Dura (Aust) Constructions Pty Ltd (Dura), the Contractor, under an AS 2124 - 1992 (the Contract), to build an apartment block in Richmond, Melbourne. Hue served 4 show cause notices on Dura under clause 44.2 of the Contract, alleging that Dura was in default by separate substantial breaches of the Contract and requiring Dura to show cause in writing why Hue should not exercise a right under the Contract to either take the works out of the hands of the Contractor or terminate the contract (if the Contractor fails to show reasonable cause by the time specified in
