Laserbore Ltd v Morrison Biggs Wall Ltd (1993)

Laserbore Ltd v Morrison Biggs Wall Ltd (1993)

The Contractor issued the subcontractor a letter of intent in which it stated that the subcontractor would be paid fair and reasonable payments for all works executed.

The Contractor had argued that fair and reasonable payments should be based on the actual costs of the subcontract plus amounts to cover overheads and profit.

The learned Judge in deciding the meaning of the term ‘Fair and reasonable payments for all works executed’, considered that costs plus basis was wrong in principle even though it may sometimes produce the right result. The learned Judge held that in assessing quantum meruit claim the appropriate approach was to adopt general market rates or fair commercial rates.

Laserbore Limited v Morrison Biggs Wall Limited [1992]