Here is a short post on how we resolved a complex and high value dispute for our client using Adjudication and achieved a result that relieved extreme financial hardship for our client.

The matter in dispute

The matter in dispute concerned the valuation and payment for works claimed by our client (the subcontractor) for variations arising from design changes, which the Contractor claimed were not variations because of the subcontractor’s design responsibility under the Sub-Contract.  Our client had submitted with an application for payment in the amount of £360,000 for the additional design works but the Contractor responded with a Payment Notice for a payment of (minus) -£380,000 showing a difference of £740,000.

How we resolved the dispute

The Contractor employed a firm of Solicitors to provide contractual interpretations as to why the Sub-Contractor was responsible for design works it claimed as variations.  We reviewed the evidence and made a response as to why the Solicitors were wrong, but the Contractor refused to engage in realistic settlement discussions, so we were instructed to commence an Adjudication.  Accordingly, we worked with our client and managed the procurement of the evidence, and we then applied the terms of the contract to that evidence to make a case that although our client did have design responsibilities, it was not responsible to the extent claimed by the Contractor for the elements of design that gave rise to the particular works in dispute.

The result

The result was that our client was extremely relieved to be awarded payment of £278,000 for the additional design works and the Contractor was ordered to pay the Adjudicators fees in full.

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.

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Email: mark@holden-smith.com

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