Time is money

When the centre closed Leyton bought the premises to demolish the garage and showroom to add new offices, a club shop, restaurant and entertainment suite. Leyton had planning permission, but needed professional help to continue with the project.

On May 16, 2001, Terence A Smith (TAS) of the Clark Smith Partnership met with Leyton's chairman Costas Sophocleous (CS) to discuss the proposals.

As confirmed in TAS's letter of May 18, Clark Smith said it could obtain building regulation approval for £13,500, obtain contractor's tenders for £6,000, and supervise site works for £12,500. In addition, TAS recommended that a party wall surveyor, a planning supervisor and acoustic consultant be engaged and that site and drainage surveys be undertaken.

The suggested contract was the ACE Conditions of Engagement, which allows for variations.

TAS and CS met again on June 8 when they agreed that Clark Smith was to carry out the work described in the May 18 letter with Leyton paying £5,000 on account.

CS thought the contractors' tenders were coming in too high, so TAS suggested breaking the work into packages, which meant additional work for trade supervision and setting out.

When Clark Smith claimed for this additional work on a time basis, Leyton refused payment. CS argued that he had agreed a lump sum of £32,000 at the May 16 meeting with no variations. The judge disagreed and awarded Clark Smith an additional £24,231.79 plus VAT.

The sum would have been higher had Clark Smith kept better time records.

Moral: Be clear on what work will be charged for.