Law of Contract

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Your Contractual Questions Answered

What Is A Quantum Meruit Claim?

By The Entrusty Group Entrusty Group, a multi-displinary group of companies, of which, one of their specialisation is in project, commercial and contractual management, has been running a regular contractual questions and answers section for Master Builders members in the Master Builders Journal. In this instalment of this series, Entrusty Group will provide the answer to another frequently asked question above.

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his is a topic where contracting parties have an agreement or when one party has performed services and/or works but there has been no agreement on the price or payment terms. Such situations frequently occur in the construction industry where the Contractor often commences the works on the basis of a letter in intent or verbal or even written instruction issued by the Employer or S.O./Architect/Engineer/ Project Director (depending on the forms of construction contract used). In some cases, the Contractor is required by the Employer or S.O./ Architect/Engineer/Project Director to carry out additional works on an existing contract as a variation to the contract, however the existing contract prices/rates do not cater for the said variation works. Thus, the Contractor will have to claim on a fair and/or reasonable basis, commonly k nown as quantum meruit.

been agreed or quantified, and usually a claim being assessed in a ‘reasonable sum’, ‘reasonable remuneration’, ‘fair market rates’, ‘fair commercial rates’ or on similar terms. An entitlement for quantum meruit claim is not applicable if there is an agreement between the parties in the existing contract to pay for the work done. However, there may be quantum meruit claims under the contract. This usually arises in two circumstances, namely: 1. When the contract is silent on how wor k done is to be remunerated or paid. In such

cases, the contract payment terms of a reasonable remuneration or sum will be...