B & M Mitchell Pty Ltd v Mikell Investments Pty Ltd & Divlist Pty Ltd t/as Contemporary Homes
[2018] NSWCATAP 35
At a glance
Source factsCourt
NCAT Appeal Panel
Decision date
2017-12-05
Source
Original judgment source is linked above.
Judgment (12 paragraphs)
Introduction
- This is an appeal from a decision made in the Consumer and Commercial Division of the Tribunal published on 1 September 2017 (the Decision). The Decision records that the applicants are builders that brought proceedings for payment by the respondent (the homeowner) of an amount said to be owing under a home building contract. The respondents appeals the Decision. We will refer to the appellant as the homeowner and to the respondents to the appeal as the builders.
- In the Decision, the Tribunal made orders to the following effect: 1. The homeowner is to pay the sum of $35,989.11 to the builders; and 2. The homeowner is to pay the costs of the proceedings of the applicants as are agreed or assessed.
- As mentioned above, the proceedings involved a claim made by the builders for the amount of $39,304.44 said to be owing by the appellant under the terms of a home building contract entered into between the parties on 27 July 2016 in respect of a property at Orange in New South Wales. In essence, the dispute involved a contention put by the builders that the contract was a "cost plus" contract by which the builders were to be paid by the homeowner for the actual costs of materials involved in construction of the building plus a 15% margin which was capped at $33,000.00 inclusive of GST. That contention was disputed by the homeowner which argued that the contract was void for uncertainty or, alternatively was a "fixed price" contract by which the homeowner was to pay the builders the sum of $278,000.00.
- It is common ground between the parties that the contract is constituted by the building contract found in the folder marked "Agreed Appeal Panel Bundle of Documents" which counsel for both parties referred to during the course of the appeal hearing.
- It is of assistance in understanding the dispute between the parties and our decision if we summarise the salient points contained in the Decision, which we do as follows: 1. The Tribunal found that the contract was "sufficiently clear" in its terms to be enforceable and that the contract price is clearly expressed to be: Invoice costs + 15%.....15% is GST incl. capped @ 15% capped at $33,000 incl GST (par 12) 1. In paragraph 13, the Tribunal stated that a potential source of ambiguity is created by insertion of the figure of $278,000.00 into the box next to the words quoted above; 2. The homeowner had submitted that the contract was void for uncertainty but the Tribunal held that that was not the case (see par 15); 3. Alternatively, the homeowner submitted that the contract was a fixed price contract requiring payment of $278,000.00. The Tribunal held that this contention was contradicted by evidence given by the homeowner's director. Such evidence included an alleged statement made by the homeowner's director in the course of cross examination when he allegedly conceded that he had expressly agreed to the "cost plus" method as set out within the contract (see par 17); 4. In paragraph 18, the Tribunal found that the amount actually paid by the homeowner to the builders in respect of the subject works exceeded the amount of $278,000.00. The claim by the homeowner that there was a fixed contract price of $278,000.00 is contradicted by the concession made by the homeowner that this amount was exceeded due to "certain variations which the [homeowner] requested during the course of the works and for which the costs of these particular variations are conceded"; 5. The Tribunal found that the evidence established that there was a contract between the parties which effectively provided for payment by the homeowner to the builders of invoice costs plus 15% (see par 19); 6. The Tribunal recorded that in the event of the Tribunal making the above finding, the homeowner submitted that the amount claimed by the builders had not been properly proved because the builders' invoices had not been placed into evidence before the Tribunal (par 19); 7. The Tribunal found that there was no challenge made by the homeowner either during the course of the work being undertaken or during evidence given before the Tribunal that the items and amounts which were claimed as paid or payable by the builders to other suppliers or service providers and which comprise the basis of the builders' present claim are either not genuine or incorrectly calculated (par 20); and 8. The Tribunal held that the builders were not required to strictly prove that each item that they claimed is genuine and accurately calculated. The amount of $35,989.11 claimed by the builders has not been disputed by the homeowner or placed in issue during the course of the hearing.