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ARTICLE · 28 NOVEMBER 2024

Legal Developments In Construction Law: November 2024

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A court upheld the validity of a misdirected payment application based on prior acceptance of similar submissions, emphasizing the principle of "pay now, argue later" under the Construction Act.

United KingdomReal Estate and Construction
Richard Craven
Richard Craven
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1. Payment application sent to wrong email address - get out of jail card for the payer?

A subcontract subject to the Construction Act specified how notices should be served and it was also agreed that payment applications should be sent to two specified email addresses. A payment application was sent to a different email address but did that make it invalid, as the contractor claimed, when it had previously accepted, as valid, applications from the subcontractor that had not been served in accordance with the contract conditions? An adjudicator decided that the application was valid and awarded the subcontractor over £1million. In proceedings to enforce the award the contractor claimed that the adjudicator had materially breached the rules of natural justice.

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