Meaning of quantum meruit
Quantum meruit is a Latin term meaning ‘the amount deserved’ or ‘what the job is worth’. It is used to refer to a claim for a reasonable sum, such as when a contractor seeks payment for work which has not been determined by a contract. If there is a contract that entitles one party to receive an agreed or reasonable sum from the other then the law of contract applies and a claim for quantum meruit cannot be used.
A claim may arise in circumstances, including:
- Where there is a quasi-contract (e.g. where some contractual terms have been agreed but price has not).
- Where no price has been fixed.
- Where there is work done that falls outside the contract.
- Where there is work done under a void or unenforceable contract.
The contractor must demonstrate that the employer requested, either expressly or impliedly, the work to be done, or freely accepted it. However, in practice, it can prove difficult for the contractor to prove the exact amount of their entitlement under the principle of quantum meruit.
There are no stipulations as to how the reasonable sum is to be assessed as circumstances often differ. The assessment of a claim for quantum meruit in the absence of a contract will differ from the assessment of a reasonable sum to be paid within a contractual framework. Where work done outside an existing contract gives rise to a quantum meruit claim, the contractor should be paid at a fair commercial rate rather than as though it had been performed under the contract (which may be a different rate).
Evidence that can prove useful to a claim includes:
- Any abortive negotiations relating to price.
- The prices in a related contract.
- Calculations based on the net cost of labour and materials.
- Expert opinions regarding what constitutes a reasonable sum.
[edit] Related articles on Designing Buildings Wiki
- Construction contract.
- Contract conditions.
- Contract law.
- Contract sum.
- Defined cost.
- Difference between lump sum and measurement contracts.
- Disallowed cost.
- Glossary of property law terms.
- Letter of intent.
- Loss and expense.
- Payment for extra work.
- Remeasurement.
- Retention.
- Right to payment.
- The distinction between liquidated damages clauses and penalty clauses.
Featured articles and news
What it is and how to use it.
Investors in People: CIOB achieves gold
Reflecting a commitment to employees and members.
Scratching beneath the surface; a guide to selection.
ECA 2024 Apprentice of the Year Award
Entries open for submission until May 31.
UK gov apprenticeship funding from April 2024
Brief summary the policy paper updated in March.
For the World Autism Awareness Month of April.
70+ experts appointed to public sector fire safety framework
The Fire Safety (FS2) Framework from LHC Procurement.
Project and programme management codes of practice
CIOB publications for built environment professionals.
The ECA Industry Awards 2024 now open !
Recognising the best in the electrotechnical industry.
Sustainable development concepts decade by decade.
The regenerative structural engineer
A call for design that will repair the natural world.
Buildings that mimic the restorative aspects found in nature.
CIAT publishes Principal Designer Competency Framework
For those considering applying for registration as a PD.
BSRIA Building Reg's guidance: The second staircase
An overview focusing on aspects which most affect the building services industry.
Design codes and pattern books
Harmonious proportions and golden sections.
Introducing or next Guest Editor Arun Baybars
Practising architect and design panel review member.