Employer not permitted to commence ‘true value’ final account adjudication (Broseley London v Prime Asset Management)

Employer not permitted to commence ‘true value’ final account adjudication (Broseley London v Prime Asset Management)

In proceedings to enforce an adjudicator’s decision for the amount stated in a contractor’s interim payment application, the Technology and Construction Court declined to grant a stay of execution to allow a ‘true value’ adjudication to take place in respect of the final account. In the view of the court, permitting the employer to commence such an adjudication, in circumstances where it had not paid the amount awarded by the adjudicator, would run contrary to S&T v Grove.

Broseley London Ltd v Prime Asset Management Ltd (Trustee of the Mashel Family Trust) [2020] EWHC 944 (TCC)

What are the practical implications of this case?

The Court of Appeal’s ruling in S&T v Grove [2018] EWCA Civ 2448181 ConLR 66 confirmed that an employer who has failed to give a valid payment or pay less notice is nonetheless entitled to bring an adjudication to determine the ‘true value’ of the interim payment application in question. However, it can only do so once it has paid the amount stated in the contractor’s interim payment application (the ‘notified sum’). See News Analysis: Court of Appeal confirms right to adjudicate true va

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About the author:

Jon is Head of the Built Environment Group at Lexis®PSL.

Jon trained at Hogan Lovells and qualified into the firm's construction disputes team. Jon has experience of acting for various parties in relation to disputes arising out of construction and engineering projects in various jurisdictions. Jon has acted for clients in TCC litigation, arbitration, adjudication and mediation as well as providing advice on various aspects of construction and engineering projects.