Regime change for payment notices (2015) 26 2 Cons.Law 29 [Archived]
Regime change for payment notices (2015) 26 2 Cons.Law 29 [Archived]

The following Construction guidance note provides comprehensive and up to date legal information covering:

  • Regime change for payment notices (2015) 26 2 Cons.Law 29 [Archived]
  • The decision
  • Summary

This article appears as originally published in Construction Law on 1 March 2015 and is not maintained.

Robin Wood and Ann Levin of Herbert Smith Freehills examine one of the first reported cases under the new statutory payment regime that amended the Construction Act, which has important lessons concerning the payment notices regime.

Key points:

  1. An employer who wishes to challenge a contractor’s application for payment must comply with the contractual and statutory regimes

  2. Failure to do so will result in the employer being deemed to accept the contractor’s valuation of the works performed

  3. If an issue has already been decided by an adjudication, even if only by implication, a second adjudication on the same issue will lack jurisdiction

  4. Notwithstanding that the courts have found differently in the context of an arbitration, an adjudicator will not have jurisdiction where there is no arguable contractual right in question

This is one of the first reported cases considering the operation of the new statutory payment regime introduced by the Local Democracy, Economic Development and Construction Act 2009, which amended the Housing Grants, Construction and Regeneration Act 1996 (HGCRA 1996). Edwards-Stuart J’s decision in ISG Construction Ltd v Seevic College [2014] EWHC 4007 (TCC) provides valuable guidance on the court’s approach to the payment notices prescribed by the statutory regime.

The facts of the case are relatively straightforward. ISG