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When does “on spec” work become chargeable?

The point at which work carried out by architects changes from being speculative to being work for which payment is expected has been considered by the High Court.

A judge has decided that, although is a common practice for architects initially to carry out work on a speculative basis, such an arrangement is finite.

Mr Recorder John Uff QC said that there were settled principles whereby work that was initially rendered on a “gratuitous” basis carried with it an implied promise of future payment.

He noted that, in the case before him, the parties had never entered into a written contract, and the claimant accepted that, to begin with, his work had been carried out “on spec”.

However, the judge considered that the parties had reached a stage where the intention had been that future work would be remunerated. He said that from that point onwards, the claimant was entitled to expect that any further work carried out at the request of the defendants would incur a fee.

Latchin (trading as Dinkha Latchin Associates) v General Mediterranean Holdings SA and others Technology and Construction Court (Mr Recorder John Uff QC) 19 February 2003.

References: PLS News 10/3/03

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