Nallini Pathmanathan JC

SALIENT FACTS

Bina Puri Sdn Bhd (‘the plaintiff’) undertook in 1995, the construction of a five and a half storey office building which included two levels of basement (‘the contract work’). The plaintiff was the main contractor for these works. The physical construction works began in November 1995, with the substructure works, ie works beneath the ground. In January 1996, cracks appeared in buildings and drains near the work site. In March 1996, deflections occurred in the retaining wall comprising a part of the contract work. In April 1996, a crackline surrounding the site appeared. Remedial measures were undertaken after this. However in July 1996, ground heaving occurred at the nearby Malaysian Nature Society building which was reported in the newspapers. Other surrounding shophouses also experienced cracks. The local council issued a stop work order. Further remedial measures were undertaken on the advice of an independent engineering consultant. During this period, in January, March and April 1996, there was heavy rainfall.

Prior to this on 22 November 1995, the plaintiff had taken a contractor’s all risks policy from the defendant (‘the policy’). The po