Quantum Meruit Claims for Construction Work

Typically a builder has a right to payment for work completed under a construction contract. However where a contractor cannot make a contractual claim they have the right to make a Quantum Meruit claim instead. Quantum meruit claims are grounded on the idea that where work has been completed for the benefit of one party, and that party subsequently does not pay for that work, then they have been unjustly enriched. This entitles the contractor to make a claim for the reasonable value of the construction work completed.

The first step in determining whether or not to make a quantum meruit claim is to ensure that there is no contract in place, as making a claim for breach of contract is generally easier.

 A contract may no longer be in place if:

1. There was a contract but it has since been made void, terminated, frustrated or is otherwise unenforceable.
2. There is a contract in place but the principal has requested further works outside of the contract.
3. Where parties are still agreeing to a contract but work has already started.

To be successful in a quantum meruit claim the contractor must be able to prove two things. Firstly that work has been completed satisfactorily. Secondly, that the contractor has incurred damages as a result of non-payment for that work. It must be emphasised that the contractor can only claim damages in the amount of the reasonable value of the work completed.

Therefore if you are a contractor in circumstances where you have completed work and the principal or head contractor is refusing to pay on the basis that there is no contract contact our office for assistance.

If you have further questions, please contact us at frank@franklaw.com.au.

This is not legal advice.