vii
TABLE OF CONTENTS
CHAPTER
1
TITLE
PAGE
DECLARATION
ii
DEDICATION
iii
ACKNOWLEDGEMENT
iv
ABSTRACT
v
ABSTRAK
vi
TABLE OF CONTENTS
vii
LIST OF TABLE
xi
LIST OF FIGURES
xii
LIST OF ABBREVATIONS
xiii
LIST OF CASES
xv
INTRODUCTION
1.1
Background of the Study
1
1.2
Problem Statement
4
1.3
Objective of the Study
6
1.4
Scope of the Study
6
1.5
Significance of the Study
7
1.6
Research Methodology
8
1.6.1
Identifying the Research Issue
8
1.6.2
Data Collection
8
1.6.3
Data Analysis
9
1.6.4
Writing
9
viii
2
CONSTRUCTION DEFECTS
2.1
Introduction
11
2.2
Definition of Defect
12
2.3
Causes of Defect
14
2.3.1
Design Error/ Faulty Design
15
2.3.2
Quality of the Material
18
2.3.3
Workmanship
20
2.4
2.5
Types of Defects
21
2.4.1
Patent Defects
22
2.4.2
Latent Defects
22
Time to Make Defect Claim
24
2.5.1
25
Defects Identified Before
Practical Completion
2.5.2
Defects Identified During the
26
Defect Liability Period
2.5.3
Defects Identified After the
27
Defects Liability Period
2.6
Defective Work in Malaysian
27
Standard Form of Contract
2.6.1
Defective Work Claim during
28
the Construction Period
2.6.2
Defective Work Claim during
31
the Defect Liability Period
2.7
3
Conclusion
34
DIMINUTION IN VALUE
3.1
Introduction
36
3.2
Definition of Value in Diminution
37
3.3
Diminution in Value and Depreciation
40
3.4
Types of Diminished Value
41
3.4.1
Inherent Diminished Value
41
3.4.2
Insurance Related Diminished
42
Value
ix
3.4.3
Repair Related Diminished
43
Value
4
3.5
Economic Waste Doctrine
43
3.6
Measuring Value Diminution
45
3.7
Conclusion
47
MEASURE OF DIMINUTION IN VALUE
4.1
Introduction
48
4.2
Measure of Diminution in Value
48
4.2.1
McBlain v McCollum and Others
49
4.2.2
Grossman Holdings Ltd v
51
Hourihan
4.2.3
Mahtani & Ors V Kiaw Aik
52
Hang Land Pte Ltd
4.2.4
Heninger v Dunn
54
4.2.5
Orndorff v Christiana Community
56
Builders
4.2.6
St. Louis LLC v. Final Touch
57
Glass & Mirror, Inc
4.2.7
Aerospace Publishing Ltd
60
and another v Thames Water
Utilities Ltd
4.2.8
Bellgrove v Eldridge
61
4.2.9
Westpoint Management Ltd
63
v Chocolate Factory Apartments
Ltd
4.2.10 Ruxley Electronic and
64
Construction Ltd V Forsyth
4.2.11 Heine v. Parent Construction, Inc.
66
4.2.12 Liew Choy Hung v Shah Alam
67
Properties Sdn Bhd
4.3
Summary of the Case Analysis
68
4.4
Findings Analysis
72
x
4.4.1
Difference in Value of the
72
Building as a Measure of
Diminution in Value
4.4.2
Cost of Repair/ Cost of
73
Rectification/ Cost of Reinstatement/
Cost of Restoration as a Measure of
Diminution in Value
4.4.3
Potential Loss Due to Nuisance
74
as a Measure of Diminution in Value
4.5
5
Conclusion
74
CONCLUSION AND RECOMMENDATIONS
5.1
Introduction
76
5.2
Findings
76
5.3
Problem Encountered During Research
79
5.4
Recommendation
80
5.5
Future Research
80
5.6
Conclusion
81
REFERENCES
83
BIBLIOGRAPHY
86
xi
LIST OF TABLES
TABLE NO.
4.1
TITLE
List of Cases Related With the Measure
PAGE
49
of Diminution in Value
4.2
Summary of the Case Analysis
62
xii
LIST OF FIGURES
FIGURE NO.
1.1
TITLE
PAGE
Research methodology and methods
10
of approach
xiii
LIST OF ABBREVIATIONS
AC
Appeal Cases
All ER
All England Law Reports
AMR
All Malaysia Reports
App.Div
Appellate Division
BLR
Building Law Reports
Cal.
California Reports
Cal. App
California [CA] Appellate Reports
CCH
Commerce Clearing House
Ch
Chancery Law Reports
CIDB
Construction Industry Development Board
CLJ
Construction Law Journal
Cont. Cas. Fed.
Contract Cases, Federal
Con LR
Construction Law Reports
CLR
Commonwealth Law Reports
DCA
District Court of Appeal
EG
Estate Gazette
EGD
Estate Gazette Digest
EWCA
England and Wales Court of Appeal
Exch
Court of Exchequer
Fla.
Florida Reports
HL
House of Lords
LGR
Local Government Reports
Lloyd’s Rep
Lloyd’s List Reports
LR, CP
Law Reports, Common Pleas
MLJ
Malayan Law Journal
xiv
N.E
North Eastern Reporter
NIHC
Northern Ireland High Court
N.J. Super
New Jersey [NJ] Superior Court Reports
NSWCA
New South Wales Court of Appeal
N.Y
New York [NY] Reports
PAM
Pertubuhan Arkitek Malaysia
PWD
Public Works Department
QB, QBD
Law Reports: Queen’s Bench Division
SGHC
Singapore High Court
SLR
Singapore Law Reports
WLR
Weekly Law Reports
WR
Weekly Reporter
xv
LIST OF CASES
CASES
PAGE
Aerospace Publishing Ltd and another v Thames Water
56, 63
Utilities Ltd [2007] EWCA Civ; 110 ConLR 1
Australian Knitting Mills Ltd. v. Grant [1933] 50 CLR. 387, 413
19
Baxall Securitites Ltd v Sheard Walshaw Partnership
13, 22
[2002] BLR 1000
Bellgrove v Eldridge [1954] 90 CLR 613
61, 70
Brunkswick Construction v Nowlan [1974] 21 BLR 27
17
Gloucestershire Country Council v Richardson [1969] 1 AC 480.
19
Granite Construction Co v United States 962 F.2d 998,
45
37 Cont.Cas.Fed. [CCH] P 76,290
Grossman Holdings Ltd v Hourihan 414 So. 2d 1037 [Fla. 1982]
51, 62
Hancock and others v BW Brazier (Anerly) Ltd [1966] 2 All ER 901,
20, 28
[1966] 1 WLR 1317, 198 EG 785, [1966] EGD 362
Heine v. Parent Construction, Inc. [2009] WL 763534
59, 63
(Fla. 4th DCA 2009)
Heninger v. Dunn [1980] 101 Cal.App.3d 858
38, 54, 69
Henry Kendall & sons v William Lillico & sons Ltd
18
[1968] 2 All ER 444, [1969] 2 AC 31, [1968] 3 WLR 110
Holland Hannen & Cubitts (Northern) Ltd v Welsh Health Technical
30
Servises Orhganisation [1981] 18 BLR 80.
Jackson v Mumford [1902] 51 WR 91
2
Jacob & Youngs v Kent 230 N.Y. 239, 129 N.E. 889 [N.Y. 1921]
44
Jacobitti v. Jacobitti 263 N.J. Super. 608 (App. Div. 1993)
50
xvi
Kaye v Hosier [1972] 1. WLR 146, [1972] 1 All ER 121
4, 25
Liew Choy Hung v Shah Alam Properties Sdn Bhd [1997] 2 MLJ 309
60, 64
Mahtani & Ors V Kiaw Aik Hang Land Pte Ltd [1995] 1 SLR 168
52, 62
McBlain v McCollum and Others [2005] NIHC 51
49, 62
McGiffin v Palmers Shipbuilding & Iron Co Ltd [1882] 10 QBD 5
2, 13
Mozzetti v. City of Brisbane [1977] 67 Cal.App.3d 565
38
Orndorff v. Christiana Community Builders [1990] 217 Cal.App.3d 683
38, 56, 69
Pearce & High Ltd v Baxter and Another 66 ConLR 110,
34
[1999] BLR 101
Perry v Sydney Phillips & Son [1982] 3 All ER 705
50
Plant construction plc v Clive Adams Associates and JHM Construction
17
Servises Ltd [2000] BLR 137
Prudent Tankers Ltd SA v The Dominion Insurance Co Ltd
23
[1980] 1 Lloyd's Rep.338
Riverstone Meat Pty Ltd v. Lanchashire Shipping Company Ltd
23
[1961] AC 807
Rotherham MBC v. Fank Haslam Milan & Co Ltd and M.J.
23
Gleeson (Norhern) Ltd [1996] 78 BLR 1 CA
Ruxley Electronics & Construction Ltd v Forsyth [1995] 73 BLR 1
6, 12, 58,
63
Salstrom v. Orleans Bar Gold Mining Company [1908] 153 Cal. 551
38
Sanderson v National Coal Board [1961] 2 QB 244
22, 23
St. Louis LLC v. Final Touch Glass & Mirror, Inc
54, 63
386 NJSuper.177, 899 A.2d 1018 [App.Div.2006]
Tate v Latham [1897] 1 QB 502
2, 13
Teh Khem On & Anor v Yeoh & Wu Development Sdn Bhd & Ors
33
[1995] 2 AMR 1558
Torres v. Schripps Inc 342 N.J. Super. 419 (App. Div. 2001)
50
Victoria University of Manchester v Hugh Wilson & Lewis
22
Wormsley and Pochin Ltd [1984] 2 Con LR 43 at 78
Westpoint Management Ltd v Chocolate Factory Apartments Ltd
63, 71
[2007] NSWCA 253
William Tomkinson and Sons Ltd v the Parochial Church
[1990] CLJ 319
31
xvii
Yandle & Sons v Sutton [1922] 2 Ch 1999
22
Yarmouth v France [1887] 19 QBD 647
1, 12
Young & Marten v Mcmanus Childs [1969] 1 AC 454,
19, 28
[1968] 2 All ER 1169, [1968] 3 WLR 630, 67 LGR 1,
9 Build LR 77, 207 EG 797, [1968] EGD 482