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Keep up to dateBy Tony Bingham2021-03-24T05:00:00
A Scottish court has upheld the NEC3 provision that makes adjudication mandatory before litigation can be sought
The NEC3 Engineering and Construction Contract document has cropped up for court guidance in the recent Scottish case of Fraserburgh Harbour Commissioners vs McLaughlin & Harvey Ltd (2021). It seems that the commissioners gave the elbow to the NEC3 adjudication clause and brought their dispute with the contractor straight to litigation. Dear me, that’s a no-no, said McLaughlin & Harvey.
Fraserburgh is way up there in the north-east corner of Scotland, north of Aberdeen, some 600 miles from London. Herring once made folks there a living. That all declined, but in its place grew demand from the oil and gas industry. Dock infrastructure went ahead apace, and McLaughlin & Harvey won the contract to deepen the harbour. It now takes cargo ships up to 100m long. The dispute is about a variety of alleged defects totting up to about £7m. Can you already see why this type of quarrel is not at first glance suited to 28-day adjudication?
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