Scaffolding client wins Variation and Extra Hire case worth £270,000

Construction Division
Working with and advising a large scaffolding contractor 

Holmes & Hills solicitors Division of specialist construction solicitors advised and represented a scaffolding company (the client) in quickly settling a scaffolding contract dispute with a major housebuilder in relation to non-payment of Extra Hire, on a contract initially tendered at £1,200,000.

Context:

The scaffolding company had entered into a contract with the national housebuilder to provide access services in respect of a residential new-build development based on a given number of units and duration of works.

At the time of contacting Holmes & Hills Solicitors, the scaffolding contractor had been on site for 14 months, with the number of units and duration of works having both materially increased.

The dispute:

The housebuilder alleged that the contract did not allow for Extra Hire and that payment was only due up to the tender price of £1,200,000. The scaffolding contractor was claiming Extra Hire in the value of £295,000.

Successful resolution:

Holmes & Hills was approached by the scaffolding contractor to advise on their legal position in respect of the claimed payment for £295,000. Following an initial letter to the housebuilder, Holmes & Hills' advised, and were instructed by the client, to commence Adjudication proceedings.

Following submissions and representations from both sides, the Adjudicator issued his decision in favour of Holmes & Hills' client, the scaffolding contractor. The housebuilder's contract did not specifically refer to Extra Hire and the scope of works had greatly increased (Variation to the contract) and the written instructions from the housebuilder could be reasonably relied upon as a Variation.

The scaffolding company received a payment of £270,000 within seven weeks of Holmes & Hills being formally instructed.

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