When may a quantity surveyor be liable for including defective work in an interim valuation?
Liability depends on the quantity surveyor's appointment and the information reasonably available. A valuation duty is not ordinarily an absolute warranty that every valued item is defect-free.
The quantity surveyor must value with reasonable skill and care but does not ordinarily undertake a general defects inspection unless the appointment says so
Dhamija v Sunningdale Joineries confirms that an obligation to value properly executed work does not automatically impose an absolute duty to discover obvious defects or inspect quality. The quantity surveyor must exercise the reasonable skill and care required by the appointment when measuring and valuing. The contract administrator or other quality-monitoring professional should communicate known defective work so that it can be excluded or adjusted. Liability may arise where the quantity surveyor ignores notified defects, departs from the agreed valuation method or assumes an express inspection duty.
| Issue | Position |
|---|---|
| Primary document | The professional appointment |
| Valuation duty | Reasonable skill and care, not an absolute warranty |
| General defects inspection | Not ordinarily implied |
| Known defect information | Must be considered when valuing |
| Express wider service | May extend responsibility |
Define the appointed service
Read the written appointment, scope, fee proposal, project procedures and later instructions. Identify whether the quantity surveyor is engaged only to measure and value or also to inspect quality, certify compliance or advise on defects.
Dhamija
The TCC rejected an absolute implied obligation to value only defect-free work and a positive general duty to inspect for defects. It recognised a duty to exercise reasonable skill and care when valuing properly executed work.
The duty is not a guarantee
An interim valuation is a professional assessment for payment, usually made on limited inspections and information. Inclusion of work later shown to be defective does not by itself prove negligence by the quantity surveyor.
Role allocation
| Participant | Typical function, subject to appointment |
|---|---|
| Contract administrator or architect | Quality observation, instructions and communication of known defects under the appointment. |
| Quantity surveyor | Measurement, valuation and financial assessment under the appointment. |
| Clerk of works or inspector | Inspection and reporting within the defined monitoring role. |
| Designer | Design compliance and technical response within its scope. |
| Contractor | Contractual responsibility for compliant work. |
| Employer | Clear appointments and information routes. |
Known defects must inform valuation
If the quantity surveyor is told that work is defective, rejected or to be removed, that information should be considered under the valuation rules. Ignoring reliable notice may breach the reasonable-care duty even where defect discovery lay with another professional.
When liability may arise
| Potential breach | Required proof |
|---|---|
| Express inspection duty | Failure to perform the promised quality review. |
| Known defect ignored | Valuation proceeds without required adjustment. |
| Measurement error | Quantity or progress materially overstated. |
| Wrong valuation basis | Contract rules or agreed method not applied. |
| Unsupported assumption | Work treated as complete without reasonable evidence. |
| Communication failure | Material qualification omitted from the valuation record. |
Causation and loss
The employer must prove that competent valuation would have reduced payment and that the overpayment caused recoverable loss. Interim payments on account, later corrections, retention, contractor solvency and recovery rights all affect quantum.
Insolvency does not prove breach
Contractor insolvency may turn an interim overpayment into an actual loss, but it does not retrospectively expand the quantity surveyor's duty. Breach must be assessed against the appointment and information at the valuation date.
Use site records, measured quantities, defect notices and payment calculations from the date, not hindsight alone.
Valuation qualifications
State the inspection limitations, information relied upon, treatment of notified defects, provisional assumptions and responsibility for quality reporting. A qualification cannot override an express duty, but it can record the actual basis of assessment.
Information protocol
Require the contract administrator and inspection team to issue defect and rejection notices to the quantity surveyor before each valuation cut-off. Maintain one register showing the required financial treatment.
Assessment sequence
Identify the alleged overvaluation and loss.
Read the quantity surveyor's complete appointment.
Establish the valuation method and inspection scope.
Reconstruct information available at the valuation date.
Identify defects notified or reasonably known.
Test the valuation against reasonable professional care.
Account for later correction, retention and contractor recovery.
Prove causation and net loss.
Authorities
| Authority | Year or citation | What it decides |
|---|---|---|
| Dhamija and Another v Sunningdale Joineries Ltd and Others | [2010] EWHC 2396 (TCC) | No absolute defects warranty or general inspection duty was implied; reasonable skill and care applied to valuation. |
| Sutcliffe v Chippendale and Edmundson | 1971 | Known defect information should be passed to the quantity surveyor for valuation treatment. |