Tesco v Constain - Thomson Reuters

2002 WL 347140 Page 112002 WL 347140 (QBD (T&CC)), [2002] EWHC 482(Publication page references are not available for this document.)Stage E 0.25%Stages FG 0.25%Stages HJKL 0.15%c) Mechanical and Electrical EngineeringIt is considered that an overall fee of 1.45% of thetotal construction costs for the Battle McCarthyteam would be appropriate. This would be brokendown as follows:Stage C 0.10%Stage D 0.15%Stage E 0.35%Stages FG 0.55%Stages HJKL 0.30%The 110,000 paid for the Stage 2 submission willbe deducted from the Stage C payments paidabove.The fees are to include all normal expenses anddisbursements but foreign travel, printing ofdocuments for planning submissions, tenderdocuments, etc. will be reimbursed at net cost.The fees indicated above are based on a fullydesigned and co-ordinated scheme. In the eventthat a procurement route is selected which reducesthe design workload for the consultants, the feeswill be adjusted by negotiation.The above are to be regarded as the main Heads ofTerms which will be fleshed out into acomprehensive formal agreement. Because, at thisstage, neither the Consortium nor the Consultantscan envisage whether a good working relationshipwill be established, it will be a condition of theAgreements that either side can terminate theAgreement at their discretion and without penaltyat one months notice.I will look forward to your response to thisproposal.35. The way in which Mr. Springgay concludedthe letter dated 3 November 1997, with thereference to the above [being] the main Heads ofTerms which will be fleshed out into acomprehensive formal agreement, indicated thatwhat was being contemplated, at least by him, wasthat the matters set out earlier in the letter wouldserve as the agenda for a negotiation of much moredetailed terms which would form a comprehensiveagreement between the parties to it. However, itappears that the contemplated parties did not, bythis stage, include CTA, at least in respect ofanything arising after Stage 2. Under cover of afacsimile transmission dated 4 November 1997 Mr.Springgay sent to Mr. Hunt a copy of a draft of aletter which he intended to send to Mr. NickThompson of CTA. The letter as sent to Mr.Thompson was dated 5 November 1997, anddiffered to some degree from the draft. Thedifferences are not material for present purposes.What is material is that the letter clearly envisagedthat CTA would have an engagement separate fromthat, or those, of HTA, Ralph Erskine, BBMK andBM after the completion of Phase 2 of thecompetition for the GMV. The relevant part of theletter dated 5 November 1997 was in these terms:-With respect to your appointment for this project,I have agreed the following points of principle withthe Consortium:1. The Design Team, of which you are an integralpart, will be paid a fixed contribution towards theirtotal costs for the current Stage 2 submission.Bernard Hunt is aware of the total amount and, asDesign Team Leader, will allocate the portion ofthis fee to be allocated to your INTEGER team.2. In recognition of the fact that the above is onlya contribution, not a full commercial fee, theConsortium will pay a success bonus to the DesignTeam of 150,000 in the event that we aresuccessful. Again, Bernard is responsible forallocating this bonus.3. If we are successful, you will be appointed tocarry out the preparation of construction drawings,tender documentation and contract supervision forthe equivalent of 50 dwellings for 3.5% of therelevant construction cost.The fees are to include all reasonable expensesand disbursements but foreign travel, printing oftender documents, etc. will be reimbursed at cost.The above is intended to set the parameter for theminimum level of input and fee you will receive.In practice, your expertise may be better applied tothe design of the visitor experience centre andshow houses or, indeed, a mix of this and normaldwellings. This will become clearer as theMasterplan develops.The planning and detailed design of the dwellingswill be carried out by Ralph Erskine to ensurecontinuity and that the whole scheme is seen to beby Erskine. Your role will be to work his designCopr. © West 2004 No Claim to Orig. Govt. Works