Case Reports

Role of architect proprietors when administering a building contract

In Dante De Grazia trading as All Sydney Building Services v Nicholas Solomon & Ors [2010] NSWSC 322 (28 April 2010) , the Supreme Court of New South Wales determined that, even though a building contract did not include an express provision requiring the contract administrator to act in an impartial manner, on proper construction of the contract as a whole, the duty to act impartially could be implied. 

Notably, the obligation to act impartially was not affected by the bifurcated position of the contract administrator (Architects) who were also the building owner. 

In relation to the builder's claims for variations of time, the Court further held that the architects were estopped from raising non-compliance with contractual time limits, or that it would be unconscionable to raise such arguments, because neither party performed its works under the contract in strict compliance with the contractual terms nor required the other party to so act.