Skanska Construction UK Ltd v Egger (Barony) Ltd. [2004] EWHC 1748 (TCC) (30 July 2004)

Skanska Construction UK Ltd v Egger (Barony) Ltd. [2004] EWHC 1748 (TCC) (30 July 2004)

The court held that SCL was entitled to recover for those items which constituted changes outside the original Employer's Requirements, as opposed to mere detailing, and that fair valuation principles applied where no directly comparable rates existed. The court accepted the evidence of SCL's experts where supported and rejected claims or credits not substantiated by evidence. The court made detailed findings on each head of claim, awarding sums where justified and rejecting or reducing claims where not proven or where credits were due to Egger.

Citation
[2004] EWHC 1748 (TCC)
Parties
Claimant: Skanska Construction UK Limited (Formerly Kvaerner Construction Limited); Defendant: Egger (Barony) Limited
Jurisdiction
England and Wales
Judgment Date
30 July 2004
Procedural Posture
Construction Dispute (quantum Trial) / Judgment on Quantum Following Earlier Liability Judgment
Outcome
Partially allowed; quantum awarded for proven claims, some claims rejected or reduced, credits given to defendant where appropriate.
Legal Topics
Quantum Meruit, Valuation of Variations, Interpretation of Contract Terms, Design and Build Contracts, Employer's Requirements, Tender Allowances, Change and Detailing Distinction
Construction Law Contract Law Quantum Meruit Valuation of Variations Interpretation of Contract Terms Design and Build Contracts Employer's Requirements Tender Allowances +1 more

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Parties

Skanska Construction UK Limited (Formerly Kvaerner Construction Limited)

Claimant

Egger (Barony) Limited

Defendant

Procedural Posture

Construction Dispute (quantum Trial) / Judgment on Quantum Following Earlier Liability Judgment

Legal Issues

  1. 1 Proper valuation of quantum claims under a GMP construction contract
  2. 2 Distinction between changes and detailing under contract clause 1.16.1
  3. 3 Entitlement to payment for variations and additional works

Ratio Decidendi

The court held that SCL was entitled to recover for those items which constituted changes outside the original Employer's Requirements, as opposed to mere detailing, and that fair valuation principles applied where no directly comparable rates existed. The court accepted the evidence of SCL's experts where supported and rejected claims or credits not substantiated by evidence. The court made detailed findings on each head of claim, awarding sums where justified and rejecting or reducing claims where not proven or where credits were due to Egger.

Court Disposition

Partially allowed; quantum awarded for proven claims, some claims rejected or reduced, credits given to defendant where appropriate.

Orders

  • SCL awarded specific sums for proven heads of claim as detailed in the judgment, including but not limited to: £125,779.83 for removal of spoil (Claim H1), £100,587.48 for temporary fire fighting (Claim H3), £36,337.20 for machine bases: silos (Claim H4A), £137,744.00 for machine bases: others (Claim H4), and...
  • Credits and deductions applied to Egger where claims were not made out or where savings accrued from instructed changes.