Janna Purdie highlights some issues affecting adjudication awards in the current economic climate
CHART
Adjudication awards / References
Adjudication
As Mr Justice Coulson identifi ed in Able, the current recession and its impact on the construction industry will provide the first real test of the adjudication regime under the Housing Grants, Construction and Regeneration Act 1996 (HGCRA 1996).
It will be interesting to see whether the courts follow the type of robust approach Coulson J followed in his case management of the enforcement proceedings.
Facts of the case
Following an adjudication award, the parties’ contractual relationship broke down.
In consideration of Able not enforcing the award, Forest agreed to pay £150,000 by instalments.
Importantly, Able included a clause in the settlement agreement providing that:
there was no full and fi nal settlement until the settlement sum had been received in cleared funds; and
if there was any default Able was entitled to enforce the adjudicator’s decision.
Forest defaulted on the settlement terms and Able applied for enforcement. Forest did not attend the hearing but sought an adjournment.
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