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ARTICLE · 10 JULY 2025

When Less Is Still Enough: TCC Confirms Validity Of Interim Payment Application

Shepherd and Wedderburn
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In 1st Formations Limited v Lapp Industries Ltd, the Technology and Construction Court held that an interim payment application was valid despite the opposing arguments that the notice did not comply...

United KingdomReal Estate and Construction
Iain Drummond
Iain Drummond
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In 1st Formations Limited v Lapp Industries Ltd, the Technology and Construction Courtheld that an interim payment application was valid despite the opposing arguments that the notice did not comply with Paragraph 2 of the Scheme for Construction Contracts 1998 as amended, it was ambiguous, and it also concerned incorrect dates and provisional sums.

Background

In 2022 1st Formations Limited (Formations) engaged Lapp Industries Ltd (Lapp) to carry out refurbishment works at an office in London. The contract did not detail any payment terms as required by the Housing Grants, Construction and Regeneration Act 1996 (the Act), so Paragraph 2 of the Scheme for Construction Contracts 1998 as amended (the Scheme) provided the implied terms that would govern payment under the contract.

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