Counsel was instructed to advise a contractor involved in a multi-phase refurbishment project under a JCT Intermediate Form with contractor’s design. The certified value of works stands at £1,563,068, with the contract administrator, informally capping the project at £1.6 million. The contractor has not been paid for certain elements, including toilet works, and disputes remain over the valuation of variations and entitlement to an extension of time. A fire curtain variation, not originally included in the design, was introduced mid-project and installed in November, contributing to delays.
The contractor is considering adjudication but was advised against pursuing a “smash and grab” approach due to the absence of key procedural elements. The contract remains unsigned, but counsel noted that a High Court would likely find that the parties had conducted themselves in accordance with its terms. The contract administrators conduct has raised concerns, particularly his refusal to formally instruct or acknowledge entitlement to additional payment, and his apparent prioritisation of budget constraints over fair valuation. The contractor’s entitlement to an extension of time is complicated by concurrent delays and the impact of the fire curtain variation on the critical path. There is also a dispute over whether the contractor provided sufficient detail to justify further time or payment.
Counsel advised against pursuing a valuation adjudication without first preparing a comprehensive final account and substantiating the extension of time claim. The contractor was instructed to compile a schedule of variations, supported by emails and site meeting notes, and to tabulate instruction numbers against the construction programme. A letter of crystallised dispute should be issued to the contract administrator, followed by adjudication if necessary. Counsel emphasised the need to demonstrate the impact of variations on the critical path and to distinguish between delays within and outside the contractor’s control. A without prejudice offer may be considered to resolve the dispute amicably and preserve the relationship with the client. Internal resources are available to assist with programme analysis and valuation breakdowns.
Call us – Mon-Fri 8:30am – 6:30pm
+44 (0) 20 3034 0077
By submitting this form, I accept this website’s Privacy Policy