The Court of Appeal has delivered some much-needed guidance as to what happens after a ‘smash and grab’ adjudication. S&T (UK) Ltd v Grove Developments Ltd confirms how and when a party on the receiving end of such a decision can go about securing an assessment of ‘true’ value.
After the ‘Smash and Grab’
Since the Construction Act was revamped, we have all become familiar with the ‘smash and grab’ adjudication (or the legitimate enforcement of a statutory right, depending which side of the fence you’re on). The contractor (or sub-contractor) does the work and submits an application for payment, politely asking to be paid for the work which has been done.
The employer (or main contractor) then submits their own valuation of the works. If they miss this first deadline they get a second chance to reduce the amount due by serving a Pay Less Notice. Miss that second chance, and an adjudicator is very likely to decide that the entire amount claimed in the contractor’s original application for payment must be handed over, plus interest and fees.
