Contractor wins payment dispute despite ‘adjudicator’s error’
Published: 30 January 2018
A contractor has won a dispute over a £277,000 payment even though the Adjudicator deciding the case may have made a mistake.
The issue arose after the contractor had been hired by a
developer constructing a block of flats. The agreement between them was based
on an amended JCT 2011 Intermediate Building Contract with Contractor's Design.
They were unable to agree the final account and the matter
went to adjudication. The Adjudicator held that the contractor was entitled to
£277,374 within 7 days.
The contractor appealed, claiming that the Adjudicator had
erred in deciding that a clause in the contract applied only to the
Contractor's Design Portion as opposed to the whole of the works and, because
of that error, the Court should declare the decision unenforceable.
The High Court found in favour of the contractor. It held
that even if the Adjudicator had been wrong on his interpretation of the
disputed clause, it would not render his decision unenforceable.
The Claim did not turn on that one clause. Most of the Claim
had nothing to do with that clause and the Adjudicator’s decision should
Please contact Matthew Sigsworth in our Dispute Resolution Team if you would more information about the issues raised in this article or any aspect of contract law.