The Client instructed Samuel Okoronkwo to advise on a payment dispute with Regiis Construction Ltd concerning scaffolding works on a residential development in the Area. The Client was engaged under a subcontract valued at £8.3 million, of which £2.4 million was paid. £1.2 million remains outstanding. The project was procured through Vale Development Ltd, now in liquidation. Camrose London Ltd, a related entity, remains active on site.
The subcontract order and terms were issued to the Client but never countersigned by Regiis. No payment schedule was provided. Applications for payment were submitted under a self-billing arrangement. Only the first application was paid in full; applications 2–8 remain unpaid, totalling £100,436.35. No valid pay less notices were issued. Regiis used the Client’s valuations to settle with Camrose but withheld payment. Correspondence from Regiis ceased, and the Client was redirected to Camrose, despite having no contract with them.
Regiis is in breach of statutory obligations under the Housing Grants, Construction and Regeneration Act 1996. The Client retains control of scaffolding on site, which has been rendered unsafe and marked accordingly under health and safety legislation. Camrose has expressed interest in taking over the scaffolding but has not formalised any agreement. The subcontract terms include a Tolent clause requiring the referring party to pay both sides’ legal costs in adjudication, which may be unenforceable.
Samuel advised initiating adjudication against Regiis for the certified but unpaid sum of £100,436.35. Application to RICS or another nominating body will be made, with referral notice submitted within 48 hours of appointment. Application 8 will be included to pre-empt any late pay less notice. The Client will maintain site control and leverage through statutory signage and restricted access. All communications with Camrose are to be formalised in writing. A without prejudice commercial proposal may be offered, subject to settlement of outstanding sums. Enforcement will follow adjudicator’s decision, including potential freezing of Regiis’s bank accounts. The Client is to be positioned as a priority creditor in any insolvency proceedings. Samuel’s intervention ensures the Client is legally protected, strategically positioned, and prepared to recover outstanding sums through adjudication and enforcement.
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