Quantum meruit has a Latin origin,
and it has dual meanings. The first meaning is ‘earned respect’ while the other
is ‘as much as earned.’ The second one is used in the construction industry.
However, both meanings indicate the
same concept. An employee pays a specific amount to the claimant against the
total value of his work.
In simple words, it is the total
money earned by a claimant for his work. But who will determine the total
amount of money? Companies hire specialists to prevent errors and get an
accurate amount.
So, if you got stuck in a
construction dispute, opt for the services of the best quantum expert
to assist you and perform the quantum analysis correctly for your company. Read
on to clear basic concepts about quantum meruit:
The Basics of Quantum Meruit in Disputes
Quantum meruit is a specific payable amount
for the services taken by a contractor if the amount of the work is not paid to
him. Many questions arise in this regard, for instance, how much amount will be
paid, how it will be awarded and more. Here are all the answers to these
queries:
What Quantum Meruit is
For instance, a proprietor enters
into an agreement for building a swimming pool with a contractor. However, both
the parties don’t specify the total amount of money at the beginning of the
project. And when it is complete, the contractor expects a better amount while
the owner disagrees.
The situation increases two types of
risks for the parties. What if the owner doesn’t paythe money at all? Or what
will happen if the parties disagree on the payment?
When it comes into Effect
In the above given situation, one of
the options for the contractor is to sue the proprietor, following the quantum
meruit theory.
Moreover, quantum meruit is usually
treated as a type of construction claim. And in this claim type, contractors
believe that property owners did not follow the contract terms and policies or
there is a breach of contract.
How to Calculate the Amount
If a contractor sues the property
owner, the experts of quantum assist in calculating the amount to be given. The
amount will be based on the market rate and time involved as per the contract.
Also, in quantum meruit, the total
amount equals the total market rate in the construction industry. It also
includes certain factors like cost of materials, labor, and more.
What Experts Say
In experts’ opinion, many other ways
of recovery are simpler than quantum meruit. For instance, owners can pay
through breach claims, prompt payment, and lien claims. Besides, quantum meruit
is more of a legal term, so treat it as your backup plan.
But whatever construction claim you
deal with; you need a professional to perform quantum analysis for you. For
this purpose, hire the best quantum expert to resume your construction project
smoothly and provide you with better solutions about claims and disputes.
Bottom Line
Quantum meruit is a type of
construction claim that contractors file against a company for paying them the
amount against the total work done. It can either be rightful or not. (It is because
claimants can sometimes sue a proprietor wrongfully for monetary gain).
Therefore, it is highly critical to
consult with a specialist to protect your reputation (as a company and as a
property owner), mitigate financial risks and analyze the exact amount in case
of payment.
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