Judgment
1 McCOLL JA: The appellant, Mr Muhanad Al-Atabi, a licensed builder who traded under the business name "Civil Choice", took proceedings in the District Court seeking payment allegedly due in respect of work he carried out for the first three respondents, Attia Zaidi, Mohammad Ali Abbas and Salma Raza, to construct eight townhouses on property they owned in Mount Druitt. The fourth respondent, Hasan Zaidi, represented the first three respondents in their dealings with the appellant.
2 The central issue at trial was what was the agreed contract price and, in particular, whether the appellant was entitled to amounts he claimed were due in respect of variations. Its resolution turned on which of three documents brought into existence in or around mid 2004 constituted the contract between the parties. The appellant claimed that the contract was a cost plus agreement for $1.1 million. He claimed amounts due for variations to the contract pursuant to two documents, one described as the "Variations Document", dated 23 January 2006 which enumerated 30 items and claimed $742,092.45, the other entitled "Variation Advice" dated 20 March 2005 in the amount of $98,725.00. He also claimed for provisional sums said to be for work the extent of which was unidentified when the contract was made. The respondents contended the agreement between the parties was to be found in a lump sum contract for $1.1 million entered into on 1 August 2004.
3 Johnstone DCJ found the contract to be the lump sum contract dated 1 August 2004, that it contained no provisional sums, that the requirements for variations under the contract were not satisfied (save as to a minor extent) and that there was no waiver of these requirements: Al-Atabi v Zaidi [2008] NSWDC 128.
4 The appellant appeals only in respect of his failure to recover $98,725 plus interest pursuant to the Variation Advice. He complains that the primary judge erred in finding that the Variation Advice did not either constitute or evidence a variation nor was the subject of an implied or express contract between the parties in accordance with Liebe v Molloy [1906] HCA 67; (1906) 4 CLR 347.
Statement of the Case
5 As the issues have been narrowly confined on appeal from those presented at trial I shall set out the background facts and findings below only insofar as necessary to resolve the appeal.
6 In early 2004 the first three respondents sought a builder for the construction of eight two-storey residential townhouses on their Mount Druitt property. At some stage the fourth respondent invited the appellant to submit a quotation for the construction work on the basis of plans and other documentation he provided to the appellant.
7 Three contractual documents were created during the course of the negotiations between the fourth respondent and the appellant. The first was described as a "Cost Plus Quotation" for an estimated budget of $1.1 million, GST inclusive, dated 21 June 2004 (the "Quotation"). The Quotation set out various specified allowances included in the budget, as well as Terms and Conditions that provided for a deposit of 5 per cent and for the builder's fees as "15% of the construction cost + GST".
8 The second document was described as a Cost Plus Contract. It was dated 25 June 2004 and set out an estimate of $900,000 in respect of the cost of works plus 15 per cent.
9 The primary judge, as I have said, found in the respondents' favour that the agreement between the appellant and the first three respondents was that contained in the third document, entitled "Home Building Contract", referred to by primary judge as the "Lump Sum Contract ("LSC"). There were three versions of the LSC in evidence - one as an annexure to the appellant's affidavit, another as an annexure to the fourth respondent's affidavit, and another was Exhibit 1 in the respondents' exhibits. As the primary judge noted (at [22]), there were differences between the three versions. Relevantly, only the version tendered as an annexure to the fourth respondent's affidavit bore the date 1 August 2004. The other versions were undated. All three versions set out a lump sum price of $1.1 million to be paid by progress payments.
10 The primary judge found (at [16]) that the appellant's evidence as to the LSC was unreliable and that he had "sought to rationalise the documentation with a view to making it suit his case". He also found (at [17]) that the appellant had a "full appreciation of the full extent of the building work required prior to 30 June 2004".
11 The primary judge concluded (at [19]) that the LSC was entered into on 1 August 2004 at a meeting between the appellant and the fourth respondent and that "the Lump Sum Contract, together with all the plans and drawings given to the appellant, constituted the construction contract, under which the price became fixed at $1.1 million inclusive of the builder's margin". His Honour further noted (at [20]):