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Through the looking glass

By: Series: Building ; 269(8348) 10 September 2004, 54-55(2)Publication details: 2004Subject(s): Summary: The legal requirement for a construction agreement to be in writing seems to have little justification. In "Murray Building Contractors v Spree Developments" (HC, unreported) the HC found that a direction to the subcontractor (M) to 'forward your costs once finalised and agreed' was not a binding agreement on price. There is no justification for the insistance of having an agreement in writing. It would be better to have an oral promise and let adjudicators use their discretion on disputes over price.

The legal requirement for a construction agreement to be in writing seems to have little justification. In "Murray Building Contractors v Spree Developments" (HC, unreported) the HC found that a direction to the subcontractor (M) to 'forward your costs once finalised and agreed' was not a binding agreement on price. There is no justification for the insistance of having an agreement in writing. It would be better to have an oral promise and let adjudicators use their discretion on disputes over price.