Jurisdiction(s):
United Kingdom

Privy Council on JCT lump sum contracts: variations remeasured; no conversion to measure-and-value; arbitral appeals limited to points of law (Mascareignes v Chang Cheng, Mauritius)

Published on: 20 July 2016

Published by a LexisNexis Construction expert

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Article summary

Original news: Mascareignes Sterling Co Ltd v Chang Cheng Esquares Co Ltd (Mauritius) [2016] UKPC 21

What was this case about?

Mascareignes retained Chang Cheng under an amended JCT Standard Form of Contract (1980 Edition) with the Contractor’s Designed Portion Supplement to design and construct an office building in Port Louis, Mauritius. During delivery, the character of the works evolved, resulting in substantial additional and substituted items (variations). At completion, the quantity surveyor—who effectively administered the contract—issued the final account, valuing the majority of the works on a measurement-and-valuation basis because of the extent of the variations. Mascareignes refused payment, so Chang Cheng commenced arbitration and succeeded in obtaining an award for the sum certified in the final account. Mascareignes appealed, contending the arbitrator was wrong to:

sanction the widespread use of measurement and valuation in the final account, holding either that the contract was on a measure-and-value footing, or that, if it began as a lump sum arrangement, the parties had varied it into a measure-and-value contract
rejecting Mascareignes’ ...

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