CASE STUDY
Arbicon were instructed by a Contractor to produce an Expert
Report in respect of a dispute that arose under an agreement with a Client for
the construction and purchase of a residential dwelling upon a freehold
property in Warwick.
The parties entered into an Option Agreement, with works to
be undertaken by the Contractor for the construction of a residential dwelling,
and any associated works in accordance with the relevant planning permission
and building regulations and the specification. The Option Agreement set out
the general scope of works to be undertaken with the contract sum analysis
totalling £750,000.
During the construction of the dwelling, several claimed
changes to the specification were enacted, and a dispute arose as to the sum to
be paid to our Client.
A visit was made to the dwelling to investigate the matters in dispute and ascertain whether the individual items claimed by our Client had been undertaken, and if so, to what extent.
The Option Agreement provided no express mechanisms for instructing any changes to the Specification and the defendant alleged that several items claimed by our Client had not been instructed. We therefore made an assessment on the value of each item on the assumed basis that the works were instructed, together with an alternative assessment that would apply if the works were not instructed.
Arbicon provided an advisory report on the quantum in the dispute with consideration given to each claimed change as to whether our Client’s claim was a change to the Specification, and what a fair and reasonable value of the change was.
It was assumed that where there was a valid change to the specification, our Client had the right to be paid for such changes. The value of these changes was based on fair and reasonable rates which were evaluated in the report.
We valued the works to be an additional circa £108,000 and the Expert Report supported our Client in the Mediation process with both parties reaching an agreement.
Circa £108,000
“We approached Arbicon to assist us in achieving a settlement for a payment dispute we had over a very large house we built for our Client. The Client disputed additional works and changes to the Specification, leaving us considerably under paid. Arbicon provided us with a great service, producing an advisory Expert Report which we relied upon heavily in the Mediation, allowing us to reach a settlement we were happy with.”
- Contractor
Arbicon Comment
“We were pleased to provide our Contractor Client with an Expert Report to help in the Mediation process, which resulted in a settlement being agreed."
- Simon Dunkling, Director, Arbicon ADR Ltd