BHC LTD v GALLIFORD TRY INFRASTRUCTURE LTD (TRADING AS MORRISON CONSTRUCTION)

[2018] EWHC 368 (TCC), Technology and Construction Court, O’Farrell J, 27 February 2018

Contract – Interpretation – Change order instructions – Whether the whole of the work should be re-measured or whether the parties were bound by the lump sum prices in the change order instructions, subject to measurement on an add/omit basis in respect of any variations of the works as compared with the original

The defendant employed the claimant to carry out structural steelwork, roof and wall cladding and precast concrete flooring works for building works to be constructed in connection with a gas processing plant. The contract provided for three buildings to be constructed. During the project, 33 additional buildings were instructed by change order instructions ("COIs") issued under the contract. A dispute arose between the parties as to the proper construction of certain of these COIs. The principal issue in dispute between the parties was whether the whole of the work covered by each identified change order should be re-measured or whether the parties were bound by the lump sum prices in the COIs, subject to measurement on an add/omit basis in respect of any variations to the works as compared with the original scope of the COI.