Tier-1 Joint Venture: €500k Kitchen Variations Recovery
The Background: Our client entered into a commercial joint venture with a Tier-1 corporate entity to develop a major residential scheme from greenfield to completion, with each party anticipating a net profit share of €1.6 million.
The Impasse: During the works, the Employer repeatedly issued instructions through the Project Architect to expand kitchen footprints and upgrade residential specifications. When the final account valuation was submitted, the Employer refused to pay the €500,000 in additional costs, contending that under an unamended JCT Design & Build contract, all design evolution and resulting costs fell strictly on the contractor. The Employer offered an inadequate "50/50 compromise".
The Intervention: PM Project Management took over the contractual governance. We conducted an exhaustive forensic audit proving that the contractor had methodically issued formal, timely Cost Warnings and written variation notifications as required by construction law precedent, legally placing full liability for employer-instructed alterations onto the Employer.