Project Overview

Arbicon were instructed by a Main Contractor who was in the process of constructing 6 new 3-bedroom town houses and associated amenity spaces and car park in South East London, prior to their construction contract being terminated due to substantial disputes.

The Building Employer alleged that our Main Contractor Client had been overpaid for the works and sought reimbursement for such overpayment, whereas our Client considered that further sums were due for construction works that had not been paid. It was also alleged that our Client had repudiated the contract, entitling the Building Employer to terminate the contract and claim damages, whereas our Client submitted that it was the Building Employer who had repudiated the contract.

The works, including demolition of the existing structure and construction of the new builds were carried out under a JCT Prime Cost Building Contract 2016.

Solution

Arbicon worked with the Main Contractor to develop and submit a full account with corresponding evidence and documents to robustly set out their claims, including that of a repudiatory breach by the Building Employer, and a substantial sum to be paid for the works completed.

The dispute was referred to Adjudication to ascertain who was responsible for the repudiatory breach, attain the true value of the works, the cost of removal from site, and loss and/or damage caused by termination.

The Adjudicator concluded that it was the Building Employer that was responsible for the repudiatory breach, having engaged other Contractors to undertake the same works that already formed part of the contract with our Client.

As a result of the evidence drawn from Arbicon, our Client was awarded circa £134,000 which included underpayment against works completed, loss/damage from repudiation, costs of removal from site and interest. The Building Employer was also ordered to pay the Adjudicator’s fee.

Value

£134,000

Arbicon Comment

"It was a pleasure to work with our Main Contractor Client, having looked at the dispute in question, it was clear to us that it wasn’t our Client that had committed repudiatory breach of contract but in fact the Building Employer. Our Client had kept contemporaneous evidence, which gave a strong case for adjudication and we were delighted with the result."

- Simon Dunkling, Director, Arbicon ADR Ltd

Client Comment

"We are very pleased with the advice and support provided by Arbicon in successfully adjudicating our construction dispute. Arbicon looked at every detail with care to put together a strong case defending the alleged repudiatory breach of contract and payments owed to us. We were happy with the adjudication result and would strongly recommend Arbicon for taking a construction dispute through the adjudication process."

- Main Contractor