It is common in construction contracts for the parties to bluff and posture. In Driltech Ground Engineering Limited v. Group Plan Contractors Limited, the Hong Kong Court of Appeal considered the effect of a threat by a sub-contractor to re-tender an element of the sub-sub-contract works. Did the threat allow the sub-sub-contractor to bring the contract to an end and sue for damages?
The facts
Group Plan was a sub-contractor carrying out work at the junction of Hiram’s Highway and Clearwater Bay Road. By a sub-sub-contract, Group Plan engaged Driltech to carry out piling works for retaining walls at two locations. The first element of the works was carried out between September 1997 and January 1998. The second element (retaining wall no.1) was originally due to commence in September 1998, though by mid August it was known to both parties that commencement would be delayed to October or November.
