Weida contracted with Jianye for sub-contract works on a Shanghai entertainment project. Weida completed the installation works, the owner confirmed practical completion, and the defects liability period expired. Jianye nevertheless withheld the retention, contract fees and additional works costs despite repeated demands.

Issue

Whether the sub-contractor was entitled to payment of the retention and additional works after practical completion and expiry of the warranty period, and whether the main contractor’s refusal amounted to breach.

Outcome

Wang Lin and Ma Dehui acted for Weida, the firm’s permanent client. Having assembled the completion records, payment history and variation documents, the firm obtained judgment for the principal sum, and the court then brought the parties to a settlement on interest and costs.