Contract Dispute Between Subcontractor and Construction Company Resulted in Compensation
Contract Dispute Between Subcontractor and Construction Company Resulted in Compensation
Contract Dispute Between Subcontractor and Construction Company Resulted in Compensation
The Court of Appeal for Western Sweden recently ruled on a dispute between a construction company and a Polish subcontractor concerning unpaid claims for work performed and material deliveries at Northvolt Ett’s battery factory.
Contractual Party
The dispute involved a subcontract for electrical and automation work at the Northvolt Ett factory outside Skellefteå. The subcontractor claimed that the construction company was their contractual party and demanded payment for labor and materials that had not yet been settled.
Dispute Over the Agreement
The subcontractor argued that an oral agreement had been made with the construction company in January 2021, supported by correspondence and the company’s documents that gave the impression of a contract. The main question was whether the construction company was indeed the contractual party responsible for payment.
Contract Formation
The Court of Appeal confirmed that an agreement had been formed between the subcontractor and the construction company, even though it was not in writing. The communication between the parties, including the agreed hourly rate of 380 SEK, substantiated this. Testimony from the subcontractor’s representatives showed that the work had been performed in accordance with the agreement.
Material and Labor Costs
The court found that the subcontractor was entitled to compensation for both labor and materials. Timesheets and material orders had been recorded in the construction company’s system and approved by their project manager. Despite some objections from the construction company, the evidence was deemed sufficient to support the subcontractor’s claims.
The Court of Appeal upheld the district court’s decision, affirming that the subcontractor was entitled to compensation from the construction company.
Court’s Conclusions
The court emphasized that contracts can be established through implied actions and mutual declarations of intent, even without a written agreement.
The case highlights the importance of documentation and clear contractual relationships, especially in companies with complex structures, to prevent misunderstandings about responsibilities and obligations.
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DeLorean Advokat handles commercial disputes regarding contract formation and compensation in construction projects on a daily basis. Contact us today for a consultation to see if we are the right firm for you and your business.