Repudiatory Breach of Contract Advice for Roofing Subcontractor

Project Overview

Arbicon were instructed to resolve a payment dispute for our Roofing Subcontractor Client, who had not been paid their latest payment application in accordance with the contract terms for two roofing subcontracts, despite the sum being notified as due.

The payment dispute escalated and our Client’s contract was wrongfully terminated, resulting in repudiatory breach from the Main Contractor. Our Client suffered delay and disruption on both projects as they did not have access to complete the works.

JCT contracts were in place for both subcontracts and payment applications had been issued and underpaid, with no Payment or Pay Less Notice submitted.

Solution

We worked closely with our Roofing Subcontractor Client to establish what payments were due and subsequently issued letters requesting payment to be made.

Following continued non-payment, we advised our Client to give notice to suspend the works, with non-payment being the grounds for suspending performance. The contract and construction Act provided entitlement to both time and payment of all losses and expenses incurred because of the suspension.

The Main Contractor terminated our Client’s contract whilst the works were suspended, amounting to repudiatory breach.

The repudiation was conclusive for wrongful contract termination during suspension, failure to pay the sums due and exclusion from site. Our Client is entitled to payment, interest and damages for the repudiation, the matter is however, ongoing.

Our Client then asked us to carry out a review of their terms of business in order for them to maintain the strongest position in procurement of future contracts.

Value

Circa £17,000