Excelo Construction Case Study

Excelo construction Ltd was employed by Twobob Ltd to construct a mixed us development. Problems started to arise from the start of the project when Twobob failed to hand the site over to Excelo Construction on the agreed date. Twobob’s nominated sub-contractor caused interruptions when Excelo accused them of interfering with their use of site. Excelo Construction began to become unhappy when representatives of Twobob Ltd started to become fussy with the work Excelo was producing and went as far as delaying the release of interim payments. The representatives also approached the contractor (Excelo) about the removal of a wall in the building, Excelo said that the wall was load bearing and could not be removed but the representative concluded
Mckinney Foundations Ltd (1970)
I cannot see how, in the ordinary course, the employer can insist upon compliance with a condition if it is partly its own fault that it cannot be fulfilled
The sub-contractor ABC Ltd who was brought in to provide underpinning services has consistently interfered with Exelo’s use of the site. The site should be sufficiently large enough so that the main contractor and the subcontractor should not impede in each other’s works. Both Excelo and ABC Ltd should work around each other’s schedules so they do not clash on site and that a steady flow of work can be achieved. ABC Ltd is responsible for the impact they have on other parties around the
The employer representatives cannot be fussy about the standard of work as they stated what slandered of work was acceptable. The contracts states that the work to be carried on the building is to be “fit for purpose” meaning the quality and standard do not have to be high, only that the building is fit for use and will provide an adequate environment for the client. Because the client and contractor are bound by a contract the client is legally obligated to pay for the work the contractor has carried out. Once the work has been certified the employer has 14 days to pay the contractor. The employer can give written notice for any deduction in pay to the contractor but the employer must give reasons for the deduction. E.g. the standard of work was not sufficient. In a case the employer fails to pay the contractor, and then the contractor can seek to sue the employer for the debt created by the contractor. The employer failing to pay the contractor does not entitle the contractor to abandon the