1. Scenario

Your project is nearing completion and you are not going to meet the revised completion date as identified in question 6.5 above. The client has claimed liquidated damages for the delay of 4 days.

At the same time, a dispute has developed between the builder, the carpet layer and the painter over the damaged skirtings. The painter says the paintwork on the skirting was done to spec and now wants to be paid for the preparation and 2 coats of paint plus drying time to make good to the damaged skirtings. The painter has claimed the subcontract work was complete and has submitted an invoice for $172.00 + GST as a variation for the repaint work.

The carpet layer claims the paintwork was sub-standard and that is the reason it sustained damage during the installation process.

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1. Identify two options that you as the builder could take to resolve the situation. Make sure you include as one option, consideration of back charges.
2. Identify which option you would choose and why.
3. In your site diary, document the dispute and decision, including all the communication that might have been required for this situation.