COVID-19 Payment and Adjudication

22 Mar 2020

As government guidance continues to be issued daily there is considerable uncertainty as to how contracts will be performed. Further guidance on the operational considerations is due from Build UK.

 

In terms of payment and enforcing payment of contractual entitlements, the payment provisions and structures of the Construction Act have not been changed. Adjudication remains available to achieve a swift form of dispute resolution. The nominating bodies are still available to appoint adjudicators and the Technology and Construction Court is well placed to hold virtual or telephone hearings to enforce decisions. To preserve your position and protect your cash flow, follow your contract procedures and as payees serve your payment notices. Where cash flow in the industry is tight you are in the best position to negotiate or take action if you have followed the procedures. As we all know, if you do not follow the procedures the consequences for both payers and payees are severe.

 

If you are met with cynical non-payment you have remedies. Your payer should be left in no doubt as to the possibility of swift adjudication and enforcement, with the usual order against it of indemnity costs. We will continue to update this page if the position changes. If you need assistance with payment or adjudication then contact us.