The Competition Tribunal has found the contractor, Dodgee Builders Ltd, guilty of collusion with Tricky Contractors and Slimey Contracts on the price fixing of their bids for the new stadium in the Rugby World Cup 2007 and a claim has been brought against all three entities by the French government to have the damages paid.

You are commissioned as an expert for the French government to quantify the damages to an evidential burden that is capable of satisfying the balance of probabilities.

Please provide, with due consideration of foreseeability, reasonableness and proximate cause a strategy for your quantification.

The strategy will consider the staged approach you will take, the heads of damages and the information you require in order to quantify the damages.

The collusion resulted in the three contractors securing a head office overhead and profit return on their costs of 25%.

Having regard to the following facts please provide your brief for the French government to determine the likelihood of success of your commission as expert.

1. There are 3 new stadiums
2. Stadium 1 is close to Dodgees office
3. Stadium 2 is close to Trickys office
4. Stadium 4 is close to Slimeys office
5. The collusion resulted in the contractors securing the stadiums closest to their offices
6. You are to determine the damages recoverable due to collusion for stadium 1 from all three contractors;
   1. Stadium 1 cost 950,000,000.00 for the contract works, 150,000,000.00 in variations and 250,000,000.00 in provisional sums
   2. The design team estimated 835,000,000.00 and allowed 125,000,000.00 for provisional sums, they do not comment on HO&P as they had no choice.
   3. The contract included a provision for the professional team to be paid 10% on the costs of the construction
   4. Dodgee added 25% to all costs incurred including provisional sums
7. Dodgee accept the findings but allege that 25% was a reasonable return for the risk of completion in time for the world cup opening match.

Tasks

You should provide a report to the client which should include;

1. A narrative of the heads of damages claimable and why. (500 words max)
   1. You should establish the principles of damages with consideration to case law
   2. You should consider the number of limbs of damage

2. Identification of the applicable heads for quantification. (700 words max)
   1. What the market price should have been
   2. Provide reference to case law or authorities in establishing your principles for items such as;
      1. Head office overheads
      2. Profit
   3. Consider the quantification of risk and the addition to the tender price by applying risk quantification methods
   4. Consider how provisional sums are to be assessed in the tender stage
   5. Follow on damages in the construction stage

3. The merits of each of the damages you assess and the likelihood of an award in dispute proceedings. (400 words max)

4. Please refer to relevant case law in your answers and consider the carecraft procedure in competition tribunal matters. (400 words max)

5. Provide a concluding narrative that determines the balance of probabilities for your client. (500 words max)

Your answer should include supporting quantum calculations.