Grove Developments Ltd V S&T (UK) – Will ‘Smash And Grab' Claims Continue?

The recent appeal case Grove Developments Ltd v S&T (UK) ("Grove") has triggered a lot of discussion on the impact of 'smash and grab' adjudications. Here we consider the key points of the case and its likely effect.

'Smash and Grab' Adjudications

A 'smash and grab' adjudication occurs when either a main contractor or sub-contractor ("payee"), has issued a payment application to an employer or main contractor ("payer"), but the payer has failed to issue a valid payment notice and/or pay less notice in response.

The Housing Grants, Construction and Regeneration Act 1996 ("HGCRA") provides that the sum applied for in the payment application will become due for payment as "the notified sum" if a valid payment or pay less notice is not issued in time. The payer is then obliged to pay this notified sum, whether or not it represents the correct or true value for the works. If the payer does not pay, the payee can raise adjudication proceedings to enforce payment of