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Associate Member Article

 

Construction: Paying more than what is truly due  

August 2020

Just as contractors generally consider that they are underpaid for their construction works, the client (the construction employer) tends to consider that they are asked to pay too much. The complex payment mechanism for construction contracts is intended to provide clarity on what the contractor is to be paid and by when. The construction employer has, over the course of the last five years or so, been subject to the tyrannical/cash flow enhancing (depending on your standpoint) smash and grab adjudication. These of course arise when the employer fails to serve certain payment notices, serves them too late, or gets the wrong information in the notices. The employer has to pay the money claimed by the contractor – no ifs, buts or maybes. Of course that is a simplification but that is the general thrust of smash and grab, where the sums paid by an employer can be in the millions of pounds....

 

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