Tesco v Constain - Thomson Reuters

2002 WL 347140 Page 82002 WL 347140 (QBD (T&CC)), [2002] EWHC 482(Publication page references are not available for this document.)I do not think it is appropriate for us to finaliseany form of fee until we have firstly established agreater appreciation of what is required duringStage Two, the briefing meeting has taken place,the level of activity which may be undertaken byour appointed Project Manager, and the extent ofthe involvement by Taylor Woodrow ConstructionsR & D Department they would also be acting as afee paid consultant.Also, on discussing matters with Richard andAlan Cherry yesterday, we would favour anarrangement whereby costs are kept to a minimum,but all parties did benefit from enhanced successbonus on our winning the project. Regarding yourexpenses to date, i.e. those relating to Stage One, Inote your figure of 7,000 and would suggest thatyou provide a breakdown and invoice the threeparties one third accordingly.26. From the terms of Mr. Phippss letter dated 9October 1997 it seems fairly clear that he wasrejecting the idea of any agreement in principle atthat stage as to the remuneration which might bepaid to HTA and the other architects involved inthe GMV project.27. Mr. Hunt was not happy to receive Mr.Phippss letter dated 9 October 1997. He respondedthe next day in a facsimile transmission in thefollowing terms:-I was extremely concerned to receive your 9October fax.I thought we had a common understanding of thebasic principles regarding the design teamsinvolvement in the project, as set out in my 26August fax, (and you will recall we discussed thiswhen we met at Moats offices). I hope ourwillingness and enthusiasm to be part of your teamfor this project go without saying. However thescale of the task in preparing a Phase 2 submissionis such that we cannot embark on it withoutconfirmation of the basis for doing so. I have beentrying to reach you by phone but without success,hence this fax. However we clearly need to discussand resolve this issue urgently, and in the meantimeI suggest we leave open the question of the designteams attendance at the English Partnershipsmeeting on Wednesday.28. It is difficult to reconcile Mr. Hunts assertionthat he believed that the proposals in his facsimiletransmission dated 26 August 1997 had beenaccepted with the absence of any response to eitherthat transmission or that of 17 September 1997, andthe fact that he was pressing in his facsimiletransmission dated 2 October 1997 for your inprinciple confirmation that the basis outlined in myfax is acceptable to you. However, Mr. Phippsseems to have responded to the facsimiletransmission dated 10 October 1997 fairlypromptly by telephone, for in a facsimiletransmission dated 13 October 1997 to Mr. Phippswhich was copied, amongst others, to Mr. RichardCherry of Countryside and to Mr. Cook of Moat,Mr. Hunt wrote:-Thank you for telephoning this morning and foryour reassurance that the basic principles for thedesign teams involvement outlined in my 26August fax (copy attached) are agreed byCountryside and yourselves. I confirm theoutcome of our discussion as follows:(i) Stage 2 costsdesign teams time and expenses on Phase 2 willbe paid by the GMT developers, howevercost estimates quoted by me are illustrative only,and not yet agreedHTA will prepare design team programmes,propose team structure and composition, andprojected staff resources for your comment andapproval, leading to an estimate of the cost ofdesign team time which will be paid by thedeveloperswe will aim for an initial agreement on these costswithin the next two weeks(ii) Stage 3 appointmentif we win the competition the design team will beappointed to carry out full design services inaccordance with the relevant institutes Conditionsof Appointment and recommended fee scales.(iii) Success bonusWe would be happy to discuss a formula along thelines suggested in your 9 October letter; I suggestwe wait till we have an initial estimate of the Stage2 costs before progressing this.(iv) Project ManagerYou have appointed Paul Springgay of TrenchFarrow and are briefing him this evening. (Pleasecould you ask him to contact me asap).(v) Project steering groupWe agreed the need for a small group ofprincipals (e.g.Taywood, Countryside, MHG,Copr. © West 2004 No Claim to Orig. Govt. Works