Introduction:
In the world of UK construction, disputes over payments can often arise, leading to a significant impact on both subcontractors and the overall progress of a project. One method that has garnered attention and becoming all too familiar in recent years is the “smash and grab” adjudication. This blog post aims to shed light on what exactly this type of adjudication entails and explore how recent case law has influenced its ruling. Additionally, we will present Optimal Surveying Solutions as a reliable partner for subcontractors seeking assistance in payment disputes.
What are Smash and Grab Adjudications?
A “smash and grab” adjudication refers to a situation where a subcontractor makes a payment application under a construction contract, and the main contractor or employer fails to issue a valid payment notice or pay less notice as required by the contract. As a result, the subcontractor can initiate an adjudication solely based on the lack of a payment notice, “grabbing” the unpaid amount without the need for a detailed assessment of the underlying works.
Case Law: Grove v S&T and Henry Construction Projects Ltd vs Alu-fix (UK)
Two significant cases have influenced the ruling on smash and grab adjudications: Grove v S&T and Henry Construction Projects Ltd vs Alu-fix (UK).
In the Grove v S&T case (2018), the court held that an employer is not entitled to commence a separate adjudication to determine the true value of the works while a separate “smash and grab” adjudication is ongoing. This clarified that the unpaid sum determined in a “smash and grab” adjudication is binding until a subsequent adjudication or courtroom decision revises it.
The case of Henry Construction Projects Ltd vs Alu-fix (UK) further emphasized the importance of issuing correct payment notices. The court ruled against considerations of natural justice for subcontractors in the absence of a valid pay less notice. This decision reinforced the effectiveness of “smash and grab” adjudications as a means for subcontractors to secure their rightful payments.
Conclusion:
Smash and grab adjudications have become a forceful approach for subcontractors to secure their rightful payments when faced with non-compliant payment notices. Recent case law, including Grove v S&T and Henry Construction Projects Ltd vs Alu-fix (UK), has solidified the significance of these adjudications.
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[Disclaimer: This blog post is intended for informational purposes only and does not constitute legal advice. Readers are advised to consult with legal professionals for specific legal concerns related to their construction contracts.]