VWV has successfully defended a contractor in
adjudication enforcement proceedings brought by a tenant under a
collateral warranty (Toppan & Abbey vs Simply
2021).
The Technology and Construction Court (TCC) dismissed the
tenant's claim, ruling that the collateral warranty was not a
construction contract and that the dispute should not have been
referred to adjudication.
In order to fully understand the importance of the TCC decision,
it is important to look back at how adjudication first entered the
construction industry, what it was originally intended for and how
it developed over the years.
How Is Adjudication Used in Construction?
Back in the nineties, the construction industry was facing a
serious challenge. Employers often withheld money from their
contractors, feeling secure in the knowledge that the contractor
would lack the resources to fund expensive and lengthy court
proceedings. Many contractors, especially smaller construction
companies, were
