When the construction of a village hall did not proceed as planned, the commissioning town council and the builders fell into dispute over a number of issues.
As a result, the builders issued a notice of adjudication to obtain an adjudicator’s decision on the sum due to them (plus interest) and a ruling on when the sum should be paid.
The builders subsequently notified the adjudicator that there were other areas of dispute. However, the adjudicator proceeded on the basis of the information before him and rendered his decision. The builders challenged this on the ground that it did not deal with all the disputed issues.
The matter then went to court. The court agreed that in principle a dispute could be transformed into something different from what it was when it started, or that matters could arise in addition to those initially considered and, in some circumstances, it would not be possible for these to be dealt with separately. That had not happened in this case, however, and the adjudicator’s decision should stand.
If you are becoming embroiled in a construction dispute, we can advise you on how to improve your chances of a speedy and equitable resolution.
Construction contracts are affected by recent changes to the Construction Act. Click here for information on the changes.