THE State Administrative Tribunal has upheld a decision of the Building Disputes Tribunal for BGC Construction to pay compensation for a breach of contract over a concrete slab.
The longstanding dispute centred on a concrete slab constructed by BGC for Errol and Rachel Felix that was not as thick as specified by the contract, which dated back to 1999.
In November 2007, the BDT determined the concrete slab was fit for its purpose, so the only issue to be determined was the loss suffered by the owners.
The BDT found the loss attributable to the breach of contract was on the basis of a reduction in value of the home.
The BDT’s findings were not published until February this year, when the tribunal ordered BGC to pay the owners $93,141 to compensate for the loss of value on the home.
In its application to the SAT, BGC submitted the BDT should have awarded the loss on the basis of the difference in cost of actual work done and the work originally specified.
Based on BGC’s proposed assessment of the difference in cost, the loss would be significantly lower at $500.
The SAT did not consider there was any basis to show the BDT was wrong in assessing the loss on the basis of reduction in value, and BGC’s application was dismissed.
