Smash and Grab Adjudication or Payment Due in Default?
The updated Construction Act (LDEDC Act 2009) that came into force on 1st October 2011, made it mandatory for the parties to a construction contract to manage the payment process properly and establish a notified sum in each payment period, during and at the end of the works. If the contract requires an application for payment then that application becomes the “Notified Sum” due, if the payer fails to deal with it and fails to state what is to be paid, either in a Payment Notice or Pay Less Notice, which have become familiar terms. After all this time, parties still get confused about their payment rights and many are unaware that they have a default payment position until we evaluate their case! The construction law is on the side of the payee. So what is Smash and Grab Adjudication?