The case arose after the architects agreed to carry out consultancy services for a local authority under a framework agreement. The work was to be carried out in two stages.
The first stage was completed without incident but there was a disagreement about fees for the second stage.
The architects claimed they were entitled to charge commission at 5.5% as set out in a letter they had sent to the authority. They argued that the authority had
effectively accepted those terms by its conduct in allowing the work to go
ahead.
The authority maintained that the overall framework agreement required that
commissions had to be renegotiated for the second phase. Those negotiations had not taken place and there was no written contract in relation to paying
commission of 5.5%.
The court ruled in favour of the architects. It held that the terms were set out in the letter. The authority had effectively accepted those terms by allowing the work to go ahead. The architects were therefore entitled to their fees.
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