The Court of Appeal has today handed down its decision on the appeal by Grove Developments Limited against the first instance decision by Coulson J, in which he decided that a party who had failed to issue an effective payment or pay less notice against a contractor’s application for interim payment could refer a dispute as to the true value of the Contractor’s works to adjudication.

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In a competitive market, offering your goods on credit is often a commercial necessity. But what if your customer becomes insolvent before they have paid for the goods? In this scenario, you will want your goods back – and to have a realistic chance of getting them back, you need to consider your contract before supply takes place.

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Victory House General Partner Limited, Re A Company [2018] EWHC 1143 (Ch) is a stark reminder of the limitations of the effectiveness of obtaining judgment based on an Adjudicator’s decision where the respondent company may have a separate and bona fide cross claim.

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This week (27 February 2018), in a judgment of the Technology and Construction Court, the Honourable Mr Justice Coulson confirmed that a party who fails to issue an effective payment or pay less notice in response to a contractor’s application for interim payment still has the right to seek in adjudication a proper valuation of the works included in the contractor’s application.

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We are all well aware by now of the draconian effect of failing to issue a timely payment notice and/or pay less notice, in accordance with the contract, in response to interim payment applications (see for example: Surrey and Sussex Healthcare NHS Trust v Logan Construction (South East) Limited [2017] EWHC 17 (TCC)). Failure to do so can lead to losing the right to dispute the amount claimed (at least until the next interim payment application or final account).

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Following the compulsory liquidation of Carillion yesterday and their appointment as special managers to support the Official Receiver, PricewaterhouseCoopers (“PwC”) website advises Carillion’s suppliers that they will be reviewing their contracts over the coming days and will be in touch “with further instructions” soon.

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When construction contracts are drafted and you are agreeing a schedule for interim payment application dates, it is critical that a provision is made for any delays. In the case of Grove Developments Limited v Balfour Beatty Construction Limited, we take a look at the consequences where stage payment is not implied.

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Leaving the EU will undoubtedly have a huge impact on the construction sector in Britain, certainly in the short term. The UK construction industry has already hit uncertainty, the housebuilders’ share price falling through the floor being a clear indication of what is to come.

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Back in 2011, amendments were made to the statutory payment notice and withholding notice regimes, first introduced by the Housing Grants Construction and Regeneration Act 1996.

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Andrew Ash has joined UK Top 100 law firm Withy King as a partner, heading up its Construction and Engineering team. Andrew joins the firm from Osborne Clarke LLP where he was an associate director for 14 years. He now …

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Partner Andrew Ash looks at the latest ruling in Grove Developments v Balfour Beatty, and what this means for contractors.

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The Construction (Design and Management)Regulations Regulations 2015 (’CDM Regulations 2015’) came into force on 6 April this year but transitional arrangements allowed existing CDM Co-ordinators appointed under the CDM Regulations 2007 to continue in that role temporarily. Those transitional arrangements came to an end on 6 October 2015.

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