Q: When do 'quantum meruit' claims arise and how should they be evaluated?
A: Quantum Meruit basically means ‘the amount he deserves’. Other similar terms being used includes ‘reasonable sum’, ‘fair market rates’, etc.
When you engage a contractor to do work without a contract or without a contract sum, he is entitled for a quantum meruit claim.
A quantum meruit claim may occur in a building contract due to the following:
•Changes were imposed without a variation clause
•Variation with significant change in quantity
•Variation involved works with items not similar character and/or condition to items in contract
Q: How are 'fair' rates defined?
A: PAM06 defines fair market rates to be determined by QS. In my opinion, it should be based on reasonable remuneration, not just cost. In fact PAM cl 11.6(d)ii allows for Cost + 15% profit.
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