The importance of formalised agreements

Proceeding with a development or construction project without formalising matters between the parties, or at least recording the key terms in writing, is risky business. Even if neither party intends to take advantage of the other, it can lead to expensive misunderstandings, as illustrated by the recent case of Edmonds v Lawson and another (t/a Lawson Developments).

The case

Noel Edmonds has claimed against property developers Ulrik and Judy Lawson (the defendants). The Technology and Construction Court (TCC) handed down judgment having considered disputes relating to two properties in Devon. The first dispute concerned a joint venture to redevelop a property. Edmonds alleged the parties had agreed that his contribution to the purchase price would be repaid before the defendants’ contribution. The court rejected this argument on the facts. The second dispute concerned the cost of renovating Edmonds’ family home. The court carried out a valuation of the works and rejected Edmonds’ suggestion that the defendant had agreed to manage the renovation for free and without a mark up on “all other costs, labour and materials etc”.

Highlighting the dangers

The case highlights the dangers of proceeding with a development or construction project without formalising matters between the parties. At a minimum the key terms must be committed to writing to avoid expensive misunderstandings.

Specialist advice

For further details or advice regarding construction contracts please contact Kelvin Parry on 0161 234 8831 or send an email.