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  • GRAB THE CASH, ADJUDICATE LATER [November 2018]

    In March 2018, we wrote about the case of Grove Developments v S&T, in which The Hon Mr Justice Coulson held that an employer whose payment notice or pay less notice was deficient or non-existent could, by way of an adjudication, dispute that the sum paid was the ‘true’ value of the works for which the contractor had claimed.

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    15/11
  • YOUR TERMS YOU DECIDE [October 2018]

    Many employers, contractors and subcontractors will be able to relate to, and likely remember, those projects which were subject to long delays for various reasons. In a main contract, for example, the contractor may be responsible for some of the delays experienced while the employer may be liable for other delays, some occurring concurrently. In those circumstances, the vexed question often asked is: “Is the contractor entitled to an extension of time?”

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    23/10
  • “SMASH AND GRAB” ADJUDICATIONS: CONFUSION AS TO CASH-FLOW WITHIN THE CONSTRUCTION INDUSTRY NOW CLARIFIED?[March 2018]

    “Smash and grab” has become an increasingly utilised phrase in the construction industry. The road to “smash and grab” adjudications began in 2014 with the case of ISG v Seevic in which, by failing to serve a valid and effective payment and/or pay less notice in response to an interim application for payment, the employer was deemed to have agreed the amount stated in that interim application for payment. At the time, the court’s position was that the true value of the interim application had "been determined" - meaning that the employer was not able to adjudicate on the true value of the works. That was until the 2017 case of ICI v Merit Merrell when it was suggested by the court that ISG v Seevic may not be decided in the same way. In his decision in Grove v S&T published only last week, The Hon Mr Justice Coulson has taken the step to depart from the decisions of his fellow colleagues in an attempt to clarify the alleged confusion as to cash-flow within the construction industry.

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    05/03
  • The Late Payment of Commercial Debts (Amendment) Regulations 2018 [March 2018]

    We often hear people talk about cash flow being the “life blood” of the construction industry. Yet, despite the fact that we know that payment is key to the success of businesses to the extent that it has potential to affect the smooth running of construction projects, the problem concerning the late payment of amounts certified as due or the non-payment of amounts applied for continues. The Late Payment of Commercial Debts (Interest) Act 1998 (the “Late Payment Act”) was implemented so as to offer those to which it applies an incentive to encourage payments to be made promptly. The incentive is in the form of a consequence for failure to make payments on time.

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    05/03
  • Interim Payment Application: Valid Despite Being Contractually Deficient [January 2017]

    The recent decision in Kersfield Developments (Bridge Road) Ltd and Bray and Slaughter Ltd [2017] EWHC 15 (TCC) provides useful guidance on the effect of bespoke contract terms on the validity of interim payment applications.

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    30/01
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