SIR LINDSAY PARKINSON & CO LTD V CMRS OF HIS MAJESTY’S WORKS AND PUBLIC BUILDINGS [1949] 2 KB 632; [1950] 1 ALL ER 208
FACTS
Sir Lindsay Parkinson & Co Ltd (‘Parkinson’), as Contractor, entered into a Contract with the Commissioners of HisMajesty’s Works and Public Buildings (‘Commissioners’), as Principal, for the construction of an ordnance factory. Under the contract the Principal had the absolute power to order alterations or additions to the works, and it was the duty of the Contractor to comply with the Superintendent’s instructions.
The Principal ordered works far in excess of the amount so contemplated (originally $3,500,000 with $500,000 in bill of quantities and the actual cost was $6,683,056), although not different in character, and as a result the work was not completed until a year beyond the anticipated date. The Contractor and Principal in this case entered into a deed of variation (for acceleration of the works) and Principal estimated a cost of $5,000,000.
The Contractor had complained to the Principal that it was being called on to execute more work in excess of that contemplated by the varied contract and claimed extra remuneration for work in excess of that contemplated. The Contractor proceeded with the work at the request of the Principal, leaving the issue to arbitration.
ISSUE
The question for decision was whether there was an entitlement to additional remuneration where the work was nominally at least performed pursuant to the contract but was of such a nature as to render the contract something different from that originally contemplated.
FINDING
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