Sub-Contractor receives settlement of £245,000 payment dispute.

Summary

A Sub-Contractor submitted its Payment Application valuing its payment amount due at £245,000, but received a Payment Notice from the Contractor valuing the payment due at £0.00 (Nil) and the Contractor further claimed that the Sub-Contractor would not be entitled to an interim payment in any event because its payment application was not served in accordance with the contractual requirements. The Contractor's valuation and claims were disputed by the Sub-Contractor.

Our Instruction

Holden Smith Consultancy received an instruction to advise on and implement a process for resolving the dispute.

What we did

We established the evidence, valued the measured works and variations in accordance with the contract, and advised on our findings, which were that the true value of the interim payment due was £204,000, not £245,000. The Contractor was not forthcoming in regard to settlement discussions so, under further instruction, we commenced Adjudication proceedings and appointed the Adjudicator.

The Result

Following referral of the claim to the Adjudicator and the Contractor, the Sub-Contractor agreed a payment of £200,000 with the Contractor in settlement of the dispute, thereby ending the Adjudication early by agreement.

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Contact

Email: mark@holden-smith.com

Tel: 07834284308.