ERDC Group Limited v Brunel University [2006] (TCC)

If the contract is inapplicable to the extra work then the rates could still be applied to the extra work carried out simply as a continuation of the contract work. This occurred in ERDC Group Limited v Brunel University [2006] (TCC) where the extra work was carried out after the expiry of the authority of the letter of intent. The letter of intent had created a contract and identified rates for the work. It was held that there was no hard and fast rules for assessment. It was held that it was not right to switch from an assessment based on ERDCs rates to one based entirely on ERDCs costs. The move was not marked at the time and ERDC only made its position clear at a much later stage by which time all the main elements of work were either substantially complete or heading for completion. A price or rate that was reasonable before expiry of authority did not become unreasonable after simply because the authority in the letter of appointment expired.

ERDC Group Ltd v Brunel University [2006]