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ARTICLE · 01 NOVEMBER 2016

It can never be unjust to be paid what your work is worth

A contractor has a legal right to be paid for work that the owner requested, even if there is no contract that says so.

AustraliaCorporate/Commercial Law

Justice Dawson said this some 25 years ago in the NSW Minister for Works' application to the High Court seeking permission to appeal a fair value award in favour of construction contractor, Renard Constructions (ME) Pty Ltd. In Sunwater Ltd v Drake Cole Ltd and another ("Sunwater"), the Queensland Court of Appeal ("QCA") affirmed that, 25 years later, this principle still holds true.

In Sunwater, a construction contractor sought payment of the fair value (quantum meruit) of its work, where:

  1. the owner had asked the contractor to do that work;
  2. when requesting that work, the owner knew that the contractor expected to be paid for it (which was implied in the commercial relationship between owner and contractor); and

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