Bairstow Construction Pty Ltd is engaged by Cummins Developments Pty Ltd under the AS 4000 General Conditions of Contract to construct a $35 million apartment building in Wakefield Street, Adelaide. The date for practical completion agreed in the contract is 30 Nov 2018. During construction, before practical completion, the Superintendent visits the site and notices that three balconies which are currently in the process of being tiled do not have the specified waterproofing membranes applied underneath the tiles.
Five other balconies have already been fully tiled and the Superintendent is concerned that they also may not have had the specified waterproofing membrane applied.
What would be the most appropriate action for the Superintendent to take next under the contract with respect to the balconies which have already been tiled?
a. Direct a variation for the tiles to be removed from all affected balconies and the waterproofing membranes to be applied
b. Call in another contractor to rectify the defective balconies and set off the cost against the next progress payment
c. Issue a direction for the five balconies which have been tiled to be tested/inspected as soon as possible
d. Terminate the contract for substantial default.