Project Overview

When our Client, Collins Contractors Ltd, fell into dispute over payment for works they had carried out for the refurbishment of a canteen area, Arbicon were happy to assist with dispute resolution to recover payment due.

The refurbishment, forming a new gym, standby generator and new catering kitchen, was under an undated JCT Design and Build Contract 2016, for the sum of £1,326,464 plus vat.

The Employer’s Agent valued the Final Account at £1,641,480 +VAT with a due balance of £348,776.71 +VAT. The Employer failed to issue any Pay Less Notice and failed to pay the sum within the Employer’s Agent certificate. 

Solution

Following non-payment, the dispute was referred to Adjudication to ascertain that a sum had been notified under the contract and to obtain payment of the notified sum. Being the unpaid £348,776.71 plus VAT and interest.

The Employer alleged that our Client was not entitled to any sums beyond the contract sum of £1,326,464.00, on the basis that the “agreed” final payment sum of £1,641,480 was negotiated by the Respondent’s Employer’s Agent in excess of its authority and/or in breach of contract. The Employer also submitted that the works were completed over a year after the date for completion, and that it was not aware of any granted extension of time.

Arbicon compiled contemporaneous evidence for a strong offence, clearly showing that the Employer’s Agent had full authority to act for the Employer under all provisions of the contract, including valuing the works. Good records and detailed correspondence were submitted as evidence that the sum had been notified, invoiced, and resultantly was due to be paid in full to our Client.

The Adjudicator concluded that the Employer was in breach of contract for failing to make payment and that the value confirmed by the Employer’s Agent was the gross value to be paid to our Client. The full amount of the due balance of £348,776.71 +VAT and interest was awarded and the Adjudicator confirmed that the Employer would pay the Adjudicator’s fees.

Value

Circa £348,000

Arbicon Comment

“We have been working with Collins Contractors for a number of years and were delighted we achieved a win for them in this adjudication. This case re-iterates the importance of being fully aware of the payment notice requirements within construction contracts, as well as the need to keep good records and evidence of all correspondence.”

- Simon Dunkling, Director, Arbicon ADR Ltd

Client Comment

“Arbicon have worked with us for several years providing contractual advice and dispute resolution services. The team have always provided a professional, prompt, and cost-effective solution to our issues and their attention to detail is invaluable. Following non-payment, Arbicon referred our dispute to Adjudication to recover payments due, and we are delighted with the 100% win obtained. We would not hesitate in recommending Arbicon’s services to other contractors.”

- Phil Lavender, Managing Director, Collins Contractors Ltd

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