Failure to give a payment or pay less notice—a change of approach

Failure to give a payment or pay less notice—a change of approach

The end for smash and grab?

In a significant judgment (Grove Developments v S&T), the Technology and Construction Court held that an employer was able to challenge by way of further adjudication the amount due to a contractor in respect of an interim application, by reference to the true value of the works: even if the employer had not given a valid payment or pay less notice.

In the court’s view, this conclusion was supported by first principles and Court of Appeal authorities, and it described analysis in the earlier decisions of ISG v Seevic and Galliford Try v Estura as ‘erroneous and/or incomplete’.

What are the implications?

This ruling by Coulson J, who shortly leaves the TCC for the Court of Appeal, represents a si

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About the author:

Jon is a Professional Support Lawyer at LexisNexis, specialising in construction law.

Jon trained at Hogan Lovells and qualified into the construction disputes team there in 2011. He joined LexisNexis in February 2016. Jon has experience of acting for various parties (including employers, main contractors, subcontractors and project managers) 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.