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ARTICLE · 06 AUGUST 2018

Compensation Events - The Final Word?

Brodies LLP
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The recent decision in ICI v Merit Merrell Technology is the latest in a series of decisions in the dispute

United KingdomCorporate/Commercial Law
David Arnott
David Arnott
Sara Lannigan
Sara Lannigan

The recent decision in ICI v Merit Merrell Technology is the latest in a series of decisions in the dispute - described by Mr Justice Fraser as 'long-running, and bitterly fought' – relating to steelworks to be carried out by MMT at a new paint manufacturing facility for ICI in Northumberland.

The contract between the parties was an NEC3 (Option A) with additional Z clauses.

In this latest judgment the court looked at the legal status of a project manager's assessment of a compensation event and of agreements reached between the contractor and a project manager regarding the value of compensation events.

The question for the court was:- is it competent for the employer to challenge assessments or agreements?

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