CASE STUDY
Subcontractor,
B.A.E Plumbing and Heating Ltd, instructed Arbicon to assist in a payment dispute
with a Main Contractor in respect of sums due and payable for works undertaken
at Moulton, Northamptonshire.
The Main
Contractor alleged contra charges and prolongation costs against our Client,
resulting in a significant difference in the account assessment.
Arbicon worked closely with our Subcontractor Client to establish what payments were due and the reasons for the alleged contra charges and prolongation costs.
Prior to the completion date, the Main Contractor issued a formal letter confirming that the site was being closed with immediate effect because of the impact of Covid-19. The site remained closed for several weeks and in turn caused a critical delay to the carrying out and completion of all works on the site, including our Client’s subcontract works.
It was evident that our Client was entitled to a full extension of time for the entire period of critical delay caused by Covid-19, a relevant event pursuant to the JCT Standard Building Contract 2011, as well as variations ordered by the Main Contractor for the works.
Arbicon defended our Client’s right to full extension of time, and that the contra charges for the delays were without merit and unjustified.
An interim and final account was submitted to the Main Contractor for payment, setting out the sum considered due and the basis of the calculation of that sum, with supporting documentation for the account.
The parties agreed to enter negotiations with the intent of reaching a full and final settlement of the account. Successful negotiations resulted in a Settlement Agreement, with our client obtaining payment of circa £32,400 +VAT including £11,700 variations.
Circa £32,400 +VAT
Arbicon’s expert team proved that we were entitled to the full extension of time for delays caused by Covid-19 and variations to the works ordered by the Main Contractor. This meant that the alleged contra charge and prolongation costs against us were void and we were delighted with the payment recovered in the negotiated settlement agreement. Arbicon provided us with a very professional service, and we would highly recommend them to other Subcontractors with a payment dispute.
- Barry Edwards, Director, B.A.E Plumbing and Heating Ltd
Arbicon Comment
The Covid-19 Pandemic has resulted in many delays for the construction industry, and this is a prime example where a subcontractor has been affected. It is important to understand what your rights are to an extension of time.
- Simon Dunkling, Director, Arbicon ADR Ltd