Pay first, adjudicate later: what an Appeal Court ruling means for the payment notice regime

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Theresa Mohammed and Stephanie Geesink of Trowers & Hamlins explain an important ruling on the payment notice regime

Parties can now seek a valuation of the sum due at an interim stage and are not reliant on the payment notice regime – following an important Appeal Court ruling last week. 

Since February there has been much debate on whether “smash and grab” adjudications are now resiled to the history books and whether payment notice defaults are no longer a concern as employers can just counter-adjudicate on the value of the relevant application. On 7 November the landmark judgment S&T (UK) Ltd vs Grove Developments Ltd was handed down, providing clarity to the payment dispute landscape. 

This case at first instance raised specific questions on the payment practices pursuant to a JCT Design and Build 2011 Contract for the design and construction of hotel and link bridge at Heathrow. 

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