David Wilson Construction Ltd v Newbattle Properties Ltd [1998] ScotCS 68 (17 November 1998)

David Wilson Construction Ltd v Newbattle Properties Ltd [1998] ScotCS 68 (17 November 1998)

There was no binding agreement for a fixed price of £250,000, nor was there agreement to a cost plus contract with an 18% mark-up, nor a fixed total price of £350,000. The October 1996 letter was not intended as a contractual document. The pursuers are entitled to payment on a quantum meruit basis for the work performed.

Citation
[1998] ScotCS 68
Parties
Pursuer: David Wilson Construction Ltd; Defender: Newbattle Properties Ltd
Jurisdiction
Scotland
Judgment Date
17 November 1998
Procedural Posture
Civil / Judgment After Proof Before Answer
Outcome
No binding contract on any of the alleged bases; pursuers entitled to payment on a quantum meruit basis.
Legal Topics
Building Contracts, Quantum Meruit, Variation of Contract, Cost Plus Contracts, Fixed Price Contracts
Contract Law Construction Law Building Contracts Quantum Meruit Variation of Contract Cost Plus Contracts Fixed Price Contracts

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Parties

David Wilson Construction Ltd

Pursuer

Newbattle Properties Ltd

Defender

Procedural Posture

Civil / Judgment After Proof Before Answer

Legal Issues

  1. 1 Whether the parties agreed a fixed price contract for £250,000 for building works at Newbattle Terrace.
  2. 2 Whether the parties agreed to a 'cost plus' basis with an 18% mark-up for the works.
  3. 3 Whether the parties agreed a total price of £350,000 for the completed project.

Ratio Decidendi

There was no binding agreement for a fixed price of £250,000, nor was there agreement to a cost plus contract with an 18% mark-up, nor a fixed total price of £350,000. The October 1996 letter was not intended as a contractual document. The pursuers are entitled to payment on a quantum meruit basis for the work performed.

Court Disposition

No binding contract on any of the alleged bases; pursuers entitled to payment on a quantum meruit basis.