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Chris The Lawyer
Chris The Lawyer, Lawyer
Category: New Zealand Law
Satisfied Customers: 22965
Experience:  38 years qualified as a lawyer; LLB, MMgt and FAMINZ.
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We have a building contract where the project manager (pm)

Customer Question

We have a building contract where the project manager (pm) asked the building contractor to arrange a fibre optic cable connection. The electrical subcontractor obtained a quote from the network provider and presented the quote direct to pm who arranged for the client to make direct payment to network provider, and in doing so bypassed the builder. What was unknown was that the quote was for copper connection only not a fibre optic connection. The client believes that they have paid for a fibre optic connection and are demanding such. The pm now considers the builder is in breach of contract. Can you be held in breach of contract for something that was effectively taken out of your contract and paid for directly by the client?
Submitted: 2 years ago.
Category: New Zealand Law
Expert:  Chris The Lawyer replied 2 years ago.

The project manager is the one who should resolve this as he facilitated the grant of this contract between the owner and the electrical contractor. As the builder you should submit a variation to the project manager which takes the optic cable supply out of your contract, and removes the sum provided. Then this makes it clear that the project manager has to take this as his responsibility