Construction Law Assignment

Added on - 21 Apr 2020

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Running head: CONSTRUCTION LAWConstruction LawName of the studentName of the universityAuthor note
1CONSTRUCTION LAWAdvice on Quantity SurveyIn the case of William Lacey (Hounslow) Ltd v Davis [1957] 1 WLR 932 certain preliminaryoperations had been initiated by the plaintiff in relation to the defendant. The operations wererelated to rebuilding of a premise which was damaged by war. The plaintiff in return of suchpreliminary services was expecting to be provided with the contract of construction by thedefendant. However after the preliminary work was completed the defendant conferred thecontract upon a third party and subsequently sold the premises without doing any rebuildingwork in it. The plaintiff in this case therefore brought a claim against the defendant for thepayment of work done by him prior to the agreement. In the given situation it was ruled by thecourt that the work which was done by the plaintiff was under no contract at all as a legallybinding agreement did not come to existence. However it was provided by the code that there hasalways been a contemplation for the payment of a work between the parties, Thus the plaintiff isentitled to payment in relation to the principles of Quantum meruit (Appleman and Holmes2016). The principles of this case provide reassurance in relation to quantity survey performedby contractors (Keane and Caletka 2015). Through these principles it can be noted that whenevera professional service is provided a General presumption is created that there is an intention topay the party for such work. In the case of H.M. Key & Partners v. MS. Gourgey and Others(1984) I CLD-02-26 the judge ruled that there is an ordinary presumption that a professional isnot expected to perform his services for free and where there is an argument that suchprofessional is not entitled to any fees, a legally enforceable and unequivocal agreement shouldexist that no charge would be taken by such professional. However it must be noted that whererecovery of such fees are possible to some extent without the formation of a legally bindingagreement, the absence of such contract increases the probability of litigation and disputes. It has
2CONSTRUCTION LAWbeen provided in the scenario that Anyway limited has performed quantity survey for SolDebGroup as they are expected to get a contract or being the main contractor for developing ashopping mall.However there is no agreement in relation to the payment of such quantity surveyfees between any of the parties (Mason 2016). According to the above discussion of laws it canbe provided that where there is lack of such agreements litigation and dispute may arise.Although it can be presumed that anyway Limited would not have done the services for free andtherefore the principles of Quantum meruit would make them entitled to payment the situationwould have been very easy for the organisation if they would have incorporated such terms in awritten agreement.Therefore according to the above discuss rules the company Anyway Limitedis entitled to be paid for the quantity survey conducted by it however a written agreement wouldhave been more beneficial and hassle free for the organisation.Advice on work before execution of formal contractThe party to construction contracts sometimes be under significant commercial pressure toinitiate the construction work even before a formal contract has been formed. Where theconstruction work is initiated quickly it is beneficial for both the parties to the constructionproject while they continue to negotiate the final terms of the contract. The process is continuousby the parties to a document known as the letter of intention. The letter of intention is adocument which is provided by a party to the construction contract to the contractor requestinghim to initiate the construction work while the final contract is negotiated. However there mightbe circumstances where the final contract may not be negotiated at all and the party's may notcome to an agreement. In such situation there can be a significant loss caused to the contractorwho has already invested money towards a construction project. However the provisions ofcontract law provide some relief to the contractors in relation to the letter of intention in relation
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