Quantum meruit

How BC law treats it

Quantum meruit has two bases. In contract, where the parties agreed that work would be done but did not fix the price, the court implies a promise to pay a reasonable amount. In restitution, where there is no enforceable contract (for example, it was never concluded, is void or was terminated), the claim rests on unjust enrichment. The unjust enrichment test requires an enrichment of the defendant, a corresponding deprivation of the claimant and the absence of a juristic reason for the enrichment (Garland v Consumers' Gas Co, 2004 SCC 25; Moore v Sweet, 2018 SCC 52). In Kerr v Baranow, 2011 SCC 10, the Supreme Court confirmed that a monetary award for unjust enrichment is often measured on a quantum meruit, or value received, basis. A valid contract that covers the work is usually a juristic reason, so quantum meruit cannot be used to override an agreed fixed price. In construction, quantum meruit often arises when a contractor performs extras without a signed change order, or when a project is terminated midway. The claimant must prove the work was requested or accepted and must prove its reasonable value, typically through invoices, time records and expert evidence of market rates. A contractor that files a claim of lien under the Builders Lien Act, SBC 1997, c 45 must still prove the amount owing. The basic limitation period under the Limitation Act, SBC 2012, c 13 is two years from discovery of the claim.

What it means for your business

Quantum meruit is a safety net, not a business plan. A contractor or consultant who works without a clear price or signed change order may recover something, but must prove value in court, often at a cost that eats into the recovery. Owners face the reverse risk: verbal instructions to a trade can create an obligation to pay a reasonable price. Written contracts with change order procedures avoid most of these disputes. Example: A Richmond electrical subcontractor installs extra lighting circuits at the general contractor's verbal request, but no change order is signed. If the general contractor refuses to pay, the subcontractor may claim the reasonable value of the extra work on a quantum meruit basis.

Risks and common mistakes

Starting work on extras without a written change order and agreed price. Trying to use quantum meruit to get more than a fixed contract price that covers the same work. Failing to keep time and material records that prove the value of the work. Assuming a claim of lien makes proof of the amount owing unnecessary. Letting the two year limitation period run while negotiating payment.