What is Quantum Meruit?
Quantum meruit is a Latin term that means “as much as deserved.” In the legal context, it refers to a claim for reasonable payment or compensation for work done or services rendered. In the construction industry, quantum meruit is often used to claim payment for work that is outside the scope of the original contract or where the contract is silent on the payment for additional work.
Related content: Quantum Meruit: What Homeowners Need to Know
Key Requirements for Claiming Quantum Meruit
To successfully claim quantum meruit for variations not signed and accepted by owners, builders must meet certain requirements. Here are the key requirements:
The subject building work fell outside the requirements of the contract, specifications, and other included documents.
1. Builders must be able to demonstrate that the work done falls outside the scope of the original contract and any included documents. This means that the variations were not part of the original agreement and were not required to complete the project.
The owner had actual knowledge of the variations as they were being done.
2. Builders must show that the owner was aware of the work being done and the changes to the scope of work. This can be demonstrated through regular communication with the owner or through written correspondence.
The owner knew that the variations were outside the contract.
3. Builders must be able to show that the owner understood that the variations were not part of the original contract and were not required to complete the project. This can be demonstrated through written correspondence or through regular communication with the owner.
The owner knew that the builder expected to be paid for the work as a variation to the contract.
4. Builders must show that the owner understood that the work was being done on a variation basis and that they would be required to pay for the work completed. This can be demonstrated through written correspondence or through regular communication with the owner.
The builder provided evidence that the amount claimed was fair value for the non-compliant work.
Builders must provide evidence that the amount claimed is fair and reasonable for the work completed outside the scope of the original contract. This can be demonstrated through invoices, quotes, or other evidence of the value of the work completed.
Key Requirements for Claiming Quantum Meruit
| Component | Explanation |
| The subject building work fell outside the requirements of the contract, specifications, and other included contract documents; | The work done falls outside the scope of the original contract and any included documents. |
| The owner had actual knowledge of the variations | The owner was aware of the work being done and the changes to the scope of work. |
| The owner knew that the variations were outside the contract | The owner understood that the variations were not part of the original contract and were not required to complete the project. |
| The owner knew that the builder expected to be paid for the work as a variation to the contract | The owner understood that the work was being done on a variation basis and that they would be required to pay for the work. |
| The builder provided evidence that the amount claimed was fair value for the non-compliant variation work. | The amount claimed is fair and reasonable for the work completed outside the scope of the original contract. |
Practical Advice for Homeowners on Claiming Quantum Meruit
Here is some practical advice for homeowners who are in NCAT proceedings and being sued for quantum meruit:
- Seek legal advice from a construction lawyer.
If you are being sued for quantum meruit for variations not signed and accepted by owners, it is important to seek legal advice as soon as possible. A lawyer can help you understand your legal rights and obligations and can provide guidance on how to defend the claim.
In order to defend a claim for quantum meruit, it may be necessary to show that one or more of the key requirements for a successful claim are not met. For example, you may be able to argue that the work completed was within the scope of the original contract, or that the owner did not have actual knowledge of the variations being done. Alternatively, you may be able to argue that the amount claimed is not fair and reasonable for the work completed.
Defending a claim for quantum meruit can be complex, and it is important to seek legal advice as soon as possible to ensure that you have the best possible chance of success. A lawyer can help you understand your legal position and can provide guidance on the best way to defend the claim.
Conclusion
In conclusion, quantum meruit is a valuable legal principle for builders in the construction industry, as it allows them to claim payment for work that they have completed, even if the owner has not approved the variations in writing. However, there are specific requirements that must be met in order for a builder to successfully claim quantum meruit, and it is important to understand these requirements before making a claim or defending a claim.
Builders should keep accurate records of all work completed and materials supplied, including any variations, and should ensure that all variations are documented in accordance with the contractual provisions. Clear communication with the owner is also crucial to avoid disputes and ensure that the owner is aware of the additional costs.
If a builder is being sued for quantum meruit for variations not signed and accepted by owners, it is important to seek legal advice as soon as possible. A lawyer can help the builder understand their legal position and can provide guidance on how to defend the claim.
Similarly, if an owner is facing a claim for quantum meruit from a builder, it is important to seek legal advice as soon as possible to understand their legal position and to defend the claim if necessary.
By understanding the legal principles of quantum meruit and following the key requirements for making a successful claim, builders can recover costs for work completed outside the scope of the original contract, and owners can protect their interests and defend against unjustified claims.
This article is general information. It is not intended to replace legal advice from a qualified lawyer. If you wish to discuss your particular circumstances with a specialist construction lawyer then phone our office for a free 15 minute consultation.
