REMEDIAL WORK EXECUTED CAUSES LOSSES, DAMAGES & SUBSEQUENT COSTS

INTRODUCTION 

Losses, damages or subsequent costs that may be incurred due to the remedial work done by a contractor may include the ff. amongst others ;

• Remedial work led to a tenant being paid to vacate the premises for the remedial work to be carried out
• Remedial work delayed other contractor’s work leading to additional payment claims from those contractors.
• Additional Supervision & Design Costs due to the remedial work
• etc

EMPLOYER'S RIGHTS 

The subsequent cost incurred is recoverable from the contractor from any payments due.

If final accounts or final payments had already been effected

Employer can file a legal suit to recover cost from the contractor.

INCLUDE FORESEABLE COSTS

These recoverable costs must also include subsequent costs which were foreseeable  eg. payments to tenants to vacate the premises whiles the remedial work is done, design and supervision costs

However there is no cost recovery for consultants who inspected/investigated the defective work

•No Contractual Provision which talks to this situation

CASE LAW; 
HW NEVILL(SUNBLEST) LTD VS WILLIAM PRESS & SON LTD(1981)

•Remedial Works Executed by the Contractor

•Final accounts and Certificate Issued

•Subsequent Costs incurred due to the remedial work

•Correcting the defects by the contractor delayed other contractor’s work leading to additional payment claims from those contractors 

•Can this cost be recovered from the contractor?

•Yes it is recoverable and must also include foreseeable costs such as tenants being paid off to vacate the premises to make way for the remedial work, designs and supervision costs etc 

•However No cost recovery for fees paid to consultants who inspected/investigated the defective work

•File a legal suit to recover the cost from the contractor

WhatsApp the PM GURU on +1 317 629 3820 if u want to know more about these thorny contractual issues