Construction Case Comment – Adjudicating When The Contract Works As A Whole Are Excluded Operations?

The Technology and Construction Court (TCC) has recently issued guidance on what activities are excluded from the statutory adjudication process under s.105(2) of the Housing Grants (Construction and Regeneration) Act 1996 as amended under the Local Democracy Economic Development and Construction Act 2009 (the "Construction Act") and on what basis a court may order a 'stay of execution' against a victorious SPV claimant.

Case summary (Equitix ESI CHP (Wrexham) Limited v Bester Generacion UK Limited)

This case concerned a project to design and build the Wrexham Biomass Fired Energy Generating Plant (the "Project"). The claimant was a special purpose vehicle ("SPV") created for the Project, whilst the defendant was the main contractor. The dispute was focused on the validity of the claimant's termination of the contract and the basis for claiming back substantial sums already paid to the defendant.