Overview

Our client received a Payment Notice valuing its works at £Nil so we procured a payment of £200,000 using Adjudication to leverage a settlement by agreement.

The dispute

Our Sub-Contractor client submitted with an application for payment for variations in the amount of £245,000 but the Contractor paid £Nil based on a claim that (a) the Sub-Contractors payment application was not validly served, and (b) it was not entitled to the variations as claimed in any event because the works were included in the lump sum.

Our instruction

We were instructed to respond to the Contractors assessment with a Referral of the dispute to Adjudication.  We worked with the Sub-Contractor in the procurement of evidence and then arrived at quantum by applying the terms of the contract to the evidence.  We drafted the Referral Notice, sent the Adjudication Notice to the Contractor, and nominated an Adjudicator through the RICS.

The result

We submitted the Referral Notice to the Contractor and the Adjudicator, following which the Contractor contacted our client and agreed to pay £200,000 thereby settling the dispute by agreement.  Accordingly, the Adjudication was ended early to the benefit of  both parties in respect of saving further costs.

If you need help with a construction claim do not hesitate to get in touch and we can provide:

·      Free preliminary review of the problem.

·      Fixed prices.

Email: mark@holden-smith.com

Tel: 07834284308.