CASE STUDY
Arbicon were approached by Main Contractor, Burmor
Construction, with regards to a dispute with a Subcontractor over contra
charges applied to a proposed final account. The Subcontractor was also refusing
to issue documentation relating to the works until paid.
The contract between the parties was the Burmor bespoke
Subcontract.
Given our extensive experience in construction contracts, we reviewed the subcontract and provided a dispute overview for Burmor Construction in order for them to negotiate with the Subcontractor and resolve the issue.
We looked closely at the terms included in the subcontract and provided opinion on the validity of each contra charge applied, together with our view on the non-release of information from the Subcontractor.
Comment was also given on the latest invoice from the Subcontractor and the requirement to issue a payment notice, we detailed when payment notices or pay less notices should be issued.
On reviewing the subcontract terms, Arbicon advised that some wording should be updated to increase the level of detail and ensure there is no ambiguity in contracts moving forward. Arbicon drafted updated terms for Burmor to bring them in line and ensure compliance with the Construction Act.
It is important in all construction contracts that key elements are included and there are no basic errors, vagueness, or ambiguity.
Circa £9,000
"Having known Simon from old, it was a pleasant experience to get back in touch to resolve a dispute with a subcontractor. From engagement to resolution, Simon was attentive and understanding of our situation and provided clear and concise advice to go forward with. Simon went one step further to identify other improvements to one of our commercial processes of which we acted upon and instructed. I am very pleased with Arbicon’s care and attention to our commercial structure."
- Luke Boekestyn, Director, Burmor Construction
Arbicon Comment
"Arbicon were delighted to provide a dispute overview for Burmor Construction, looking at the contra charges separately to establish the validity of each claim so that a negotiated resolution could be reached. We also drafted updated terms, ensuring key points were included and there was no ambiguity, reducing the risk of future disputes."
- Simon Dunkling, Director, Arbicon ADR Ltd