glossary Glossary 2 min read

Quantum meruit

Quantum meruit is a legal claim for reasonable payment for work done outside or without a valid contract. Used when a variation was not signed or documented.

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Quantum meruit (Latin: “as much as deserved”) is a legal remedy allowing a builder to claim reasonable payment for work carried out outside or without a valid contract. In residential building disputes it most commonly arises when a variation was performed without being documented and signed, leaving the builder without a contractual entitlement to the extra cost.

To succeed on a quantum meruit claim in NSW a builder must prove five elements (per Goodacre v Trinder Alpine Constructions [2013] NSWCCT 124): the work exceeded the contract scope, the owner knew of it during execution, the owner understood it was outside scope, the owner knew payment was expected, and the builder can evidence fair market value. The recovery is limited to reasonable remuneration, not the contract rate, and cannot exceed what the contract would have paid for equivalent work.

Critical limitation: A quantum meruit claim cannot be made under the Building and Construction Industry Security of Payment Act 1999 (NSW). It is a common law restitution remedy pursued through NCAT, VCAT, or the courts. It is harder, slower, and less certain than a properly documented signed variation.

Also known as: reasonable remuneration, “as much as deserved.”

Category: Contracts and commercial.

See also


Last updated: 2026-05-09. Verified: 2026-05-09. Quarterly review for currency.