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Court of Appeal confirms right to adjudicate true value of the works in absence of payment/pay less notice (S&T v Grove Developments)

Court of Appeal confirms right to adjudicate true value of the works in absence of payment/pay less notice (S&T v Grove Developments)
Published on: 07 November 2018
Published by: LexisPSL
  • Court of Appeal confirms right to adjudicate true value of the works in absence of payment/pay less notice (S&T v Grove Developments)
  • What are the practical implications of this case?
  • What was the background?
  • What did the court decide?
  • Pay less notice
  • Adjudication as to the true value of the works
  • Liquidated damages
  • Case details

Article summary

Construction analysis: The Court of Appeal upheld the decision of the Technology and Construction Court (TCC), confirming 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 notice or pay less notice. However, the Court of Appeal confirmed that it could only do this once it had paid the ‘notified sum’. The court also upheld the TCC’s findings that a pay less notice was valid, even though it specified the basis of calculation by reference to an earlier document, and that (in relation to liquidated damages under the JCT contract) it was permissible to send a deduction notice immediately after the warning notice. or take a trial to read the full analysis.

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