International Construction Law Review
QUANTUM MERUIT AS A REMEDY IN CONSTRUCTION LAW*
Andrew Skelton
Barrister, Wellington, New Zealand
David Robertson1
Partner, White & Case, London
INTRODUCTION
Quantum meruit means “as much as he deserved” or “the amount deserved” and refers to a claim for a reasonable sum for work performed.2 A claim for a quantum meruit can arise as a contractual quantum meruit or as a non-contractual quantum meruit.3
A contractual quantum meruit arises where parties have entered into an agreement to perform work but either no price is agreed, or the parties agreed that the contractor is to be paid a reasonable price without stating what the price is. The contractor’s entitlement to reasonable remuneration for its work is an entitlement that arises under the contract.
A non-contractual quantum meruit arises by operation of law where work is performed for another but there is no contract or no enforceable contract which governs the work. The doctrinal basis for the remedy, and valuation of the amount deserved, are both controversial.
The circumstances in which an entitlement to a non-contractual quantum meruit might arise in the context of construction law include where:
- (a) Work has been done on the basis of a request or under a letter of intent in anticipation of a contract which fails to materialise;
- (b) Work has been done under a void or unenforceable contract; for example, where work is done under a contract which is
* This article is adapted from a paper fi rst produced for and presented at the 9th International Society of Construction Law Conference, New Zealand, 3–5 November 2021.
1 The authors would like to acknowledge and thank Professor Anthony Lavers, Anna Yamaoka-Enkerlin and Primrose Tay for their input and assistance in preparing this paper.
2 Mann v Paterson Constructions Pty Ltd [2019] HCA 32, paragraph 150 (Mann); Furst, S and Ramsey, V (Sir), Keating on Construction Contracts (11th Edition, Sweet & Maxwell, 2021) paragraph 4-031.
3 Bailey, J, Construction Law, Volume II (3rd Edition, London Publishing Partnership, 2020) paragraphs 6.14–6.15.
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