PROBLEM
Eiffel Builders Inc enters into a contract with SupeInfrastructure to build a water desalination plant...Eifel Builders engages Aqua Engineers to prepare turbine capacity specifications for each stage. The contract provided for payment a 3-stage basis.
The specifications on three occasions are stamped "approved" by Eiffel. Subsequently Eiffel refuses to pay for the Specifications services on the basis that the speciation prepared were not adequate and involved a variation of the provisions of the contract..
At site meeting is organised with all parties. They discuss the requirements and verbally agree on terms to vary the construct so that the specifications as presented can be carried out acting on this agreement the building proceeds. A few weeks later Eiffel r refuses to pay Aqua because the specifications are not complete and do not comply with the terms of the written contract.
QUESTIONS
PART A
ASSUME THAT THE SECURITY OF PAYMENTS LEGISLATION DOES NOT APPLY
1. What is affect of a conflict between the specifications and the written terms of the contract? How do you resolve that conflict? Address legal principles.
2. What is the legal affect of stamping the specifications "approved" on any future contractual position? Refer and explain the legal principles and describe what rights each party may have.
3. Do the parties have to act in good faith? How these principles could be applied to the appropriate conduct of the parties
4. What procedures would you formulate to cover possible amendments of the contract in the course of construction and
5. How experts could be used in the court system in this dispute and what it their role to assist the resolution disputes. Refer to the Expert Code of Conduct
PART B
What is the impact of the Security of Payment legislation in possible dispute resolution and if the parties in the above case wished to use the procedure provided what is required. Describe the process what each party would be required to do and refer and explain the relevant section of the act.