Construction Disputes Case Study 3

Bell Lax were instructed by a large construction company in defence of an adjudication for a five figure sum arising out of our client’s alleged failure to correctly serve a Withholding Notice under the contract. 

The adjudication turned upon whether further sums were due following the Referring Party’s application for payment.   Our client argued that as no further sums were due under the contract, the application for payment was invalid and no Withholding Notice was required.

The claim involved complex matters of law including payment timetables under construction contracts, the extent to which such contracts have to be in writing to allow a referral to adjudication and the requirements of Withholding Notices.

The Adjudicator agreed with our client that no further sums were due under the contract and therefore that a Withholding Notice was not necessary.