Holmes & Hills LLP represented a contractor in three separate payment disputes arising under a framework arrangement with a national housing developer.
The contractor had spent several months attempting to resolve the disputes directly, but no meaningful progress had been made. Holmes & Hills prepared and served three Notices of Adjudication, which resulted in the developer engaging immediately through its in-house solicitor.
Rather than continuing with three separate adjudications, the parties entered into negotiations and agreed a global settlement at 70% of the total sum outstanding. The settlement resolved all three payment disputes and brought the wider framework arrangement to a commercial conclusion.
The contractor had carried out works for the developer under a wider framework arrangement. Three separate payment disputes arose concerning:
The contractor made repeated attempts to resolve the position directly with the developer. Although discussions continued over several months, they did not result in payment or a clear proposal for bringing the disputes to an end.
Holmes & Hills was therefore instructed to advise on the contractor’s position and commence adjudication proceedings.
Each payment issue amounted to a separate dispute and required its own Notice of Adjudication.
Holmes & Hills prepared and served three Notices, placing each dispute into the formal adjudication process. The contractor was ready to proceed with all three adjudications if a commercial resolution could not be reached.
Service of the Notices changed the position immediately. After several months of limited progress, the developer instructed its in-house solicitor to engage directly with Holmes & Hills and meaningful settlement negotiations began.
Rather than continuing to deal with each payment dispute in isolation, the parties considered their wider commercial position.
A global settlement was negotiated at 70% of the total sum outstanding. This resolved all three disputes and brought the framework arrangement between the parties to an agreed conclusion.
The settlement avoided the time, cost and management burden of taking three separate adjudications through to a decision. It also gave both parties certainty that no further disputes would arise under the framework.
Adjudication does not always need to proceed to a final decision to achieve a successful result.
In this case, the contractor had attempted to engage with the developer for several months. It was only when the three Notices of Adjudication were served, and the developer faced the immediate timetable and cost of defending three separate proceedings, that the discussions moved forward.
The Notices were not served simply as negotiating leverage. The contractor was prepared to proceed with each adjudication if necessary. However, their service created the urgency needed to bring the right people into the discussions and enabled a wider commercial settlement to be reached.
Holmes & Hills LLP’s specialist Construction Team acts for contractors and subcontractors across the UK in adjudications concerning unpaid notified sums, final accounts, retentions, variations, defects, delay and termination.
If payment discussions have stalled, or you are considering starting or responding to an adjudication, contact Holmes & Hills to discuss your position and the options available.
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