PROBLEM QUESTION:
Tara was a contractor and has built some of the largest buildings in the capital city of Port of
Prince. She has been building high rise buildings for twenty years. Hiran, a wealthy
businessman, entered into a contract with Tara, for the latter to build a twenty-story
residential building for two hundred million dollars. (Please see the contract on the next
page).
Tara had several other large projects on-going simultaneously, but knew that she could
manage this new project with Hiran. In or around July of 2019, Tara began construction, even
though she had not obtained final building approvals from the City Corporation. She only had
provisional approvals. She assumed they would be made final without any issue and did not
want to delay the construction time. In fact, the Town and Country Buildings Act provides
that: “No construction must be commenced without all necessary approvals
being obtained.” When Hiran discovered that Tara did not have final approvals, Hiran chained
the gate to the construction site and informed Tara that she should not continue working until the
approvals
were obtained. Tara ignored Hiran and drove through the locked gate and continued to work.
When Hiran saw this, he got irate. He messaged a friend of his who worked on the site and
encouraged the workmen to strike. This resulted in a “downing of tools” for about 9 months.
Then when Tara obtained final approvals, in March 2020, the Covid-19 pandemic occurred
which saw severe restrictions imposed by the Government. These restrictions included the
“prohibition of construction sites from carrying out any non-essential works.”
On 11 day of July 2020, Tara told Hiran, over the phone, that she needed more time to
complete the building. Hiran told Tara that an extension would not be allowed in any
circumstance. Tara informed Hiran that she would not continue her performance of the
contract because Hiran caused the delay in the first place. The building was about 40%
completed and only $60 million had been spent so far by Hiran.
Advise of any issues that may arise in this question.
, THE AGREEMENT
This Agreement dated the 12th day of July in the year of two thousand and eighteen between
Tara, hereinafter referred to as the Contractor, of the One Part, and Hiran, hereinafter
referred to as the Owner, of the Other Part.
WHEREAS:
(a) Tara iis an experienced contractor with more than twenty years’ experience in
construction; and
(b) Hiran is desirous of building a multi-story residential building.
Contractor’s Obligations
It is hereby agreed that the Contractor will:
(1) Construct a twenty-story residential building (hereinafter referred to as the building)
on the site located at 15 Goodwood Street, Port of Prince, as described in Deed No.
DE584738382929.
(2) Obtain all approvals prior to construction.
(3) Complete the construction of the building within two years from the date of this
contract.
Owner’s Obligations
It is further agreed that the Owner will:
(4) Pay the Contractor the sum of two hundred million Trinidad and Tobago dollars
($200,000,000.00 TTD);
(5) Not prevent, obstruct the work of the Contractor in any way.
Delay
(6) In the event of any delays, Tara will communicate, in writing, to Hiran a request for an
extension of time.
IN WITNESS WHEREOF, the parties have executed this Agreement on the date first above
written.
Hiran Tara
_____________ ________________
Hiran Tara
12 October 2015 12 October 2015
Tara was a contractor and has built some of the largest buildings in the capital city of Port of
Prince. She has been building high rise buildings for twenty years. Hiran, a wealthy
businessman, entered into a contract with Tara, for the latter to build a twenty-story
residential building for two hundred million dollars. (Please see the contract on the next
page).
Tara had several other large projects on-going simultaneously, but knew that she could
manage this new project with Hiran. In or around July of 2019, Tara began construction, even
though she had not obtained final building approvals from the City Corporation. She only had
provisional approvals. She assumed they would be made final without any issue and did not
want to delay the construction time. In fact, the Town and Country Buildings Act provides
that: “No construction must be commenced without all necessary approvals
being obtained.” When Hiran discovered that Tara did not have final approvals, Hiran chained
the gate to the construction site and informed Tara that she should not continue working until the
approvals
were obtained. Tara ignored Hiran and drove through the locked gate and continued to work.
When Hiran saw this, he got irate. He messaged a friend of his who worked on the site and
encouraged the workmen to strike. This resulted in a “downing of tools” for about 9 months.
Then when Tara obtained final approvals, in March 2020, the Covid-19 pandemic occurred
which saw severe restrictions imposed by the Government. These restrictions included the
“prohibition of construction sites from carrying out any non-essential works.”
On 11 day of July 2020, Tara told Hiran, over the phone, that she needed more time to
complete the building. Hiran told Tara that an extension would not be allowed in any
circumstance. Tara informed Hiran that she would not continue her performance of the
contract because Hiran caused the delay in the first place. The building was about 40%
completed and only $60 million had been spent so far by Hiran.
Advise of any issues that may arise in this question.
, THE AGREEMENT
This Agreement dated the 12th day of July in the year of two thousand and eighteen between
Tara, hereinafter referred to as the Contractor, of the One Part, and Hiran, hereinafter
referred to as the Owner, of the Other Part.
WHEREAS:
(a) Tara iis an experienced contractor with more than twenty years’ experience in
construction; and
(b) Hiran is desirous of building a multi-story residential building.
Contractor’s Obligations
It is hereby agreed that the Contractor will:
(1) Construct a twenty-story residential building (hereinafter referred to as the building)
on the site located at 15 Goodwood Street, Port of Prince, as described in Deed No.
DE584738382929.
(2) Obtain all approvals prior to construction.
(3) Complete the construction of the building within two years from the date of this
contract.
Owner’s Obligations
It is further agreed that the Owner will:
(4) Pay the Contractor the sum of two hundred million Trinidad and Tobago dollars
($200,000,000.00 TTD);
(5) Not prevent, obstruct the work of the Contractor in any way.
Delay
(6) In the event of any delays, Tara will communicate, in writing, to Hiran a request for an
extension of time.
IN WITNESS WHEREOF, the parties have executed this Agreement on the date first above
written.
Hiran Tara
_____________ ________________
Hiran Tara
12 October 2015 12 October 2015
