Supreme Court publishes key decision for those working in the UK’s gig economy.
In Jawaby Property Investment v Interiors Group** the Employer had asked for a “valuation” 3 days before the date on which an interim payment application had to be made under the contract. The Contractor sent through a spreadsheet the day before the “interim application date”. The court refused to regard this “valuation” as a valid application for payment, saying that a payment application had to be “in substance, form and intent an interim application”.
Asking for a “valuation” just before the interim application date is a common approach to cashflow planning. However, many Contractors (and Employers) have assumed that providing this is all the Contractor needs to do in order to apply for payment.
The importance of getting applications for payment right comes from the fact that, if the Employer (or the Client Representative/Contract Administrator – depending on who the contract says is responsible for issuing the “Construction Act” payment notice) doesn’t issue a payment notice, the application for payment becomes the payment notice.
The Employer must then pay the full amount stated in the application for payment unless the Employer serves a “pay less notice” in time (stating the amount the Employer thinks should be paid when they serve the notice and the basis on which that amount is calculated).
Case law is now clear therefore that, in order to be a valid payment application under the Construction Act, an application must:
- clearly be a payment application (and not just, for example, a spreadsheet or “valuation” listing prices or costs for work done);
- be clear about the due date to which it relates (ideally the due date should be stated in it);
- not be made early or substantially late – unless the Employer has agreed to this; and
- state clearly and unambiguously the total amount due and basis of calculation.
There is no problem with asking for a “valuation” in advance of the application. The problem is thinking that this “valuation” is the application.
*Housing Grants, Construction and Regeneration Act 1996 as amended by the Local Democracy, Economic Development and Construction Act 2011
**Jawaby Property Investment Ltd v (1) Interiors Group Ltd (2) Andrew Stephan George Black  EWHC 557 (TCC)
For more information
Contact Andrew Millross.
From 6 April 2021, it will be the responsibility of medium and large private sector organisations to assess whether contractors working through an intermediary come within the ambit of IR35.
The 'Chocolate Snowman Appeal' is an amazing initiative that Anthony Collins Solicitors' (ACS) employees take part in every year.
The Building Safety Bill (the Bill) is said to be the most significant and wide-ranging change to the regulatory environment for higher risk building (HRBs) for over 45 years.
On 4 November 2020, the Restriction of Public Exit Payments Regulations 2020 (the Regulations) came into force; exit payments for the public sector were capped at £95,000.
The case was brought by the Official Receiver who sought disqualification orders under section 6 of the Company Directors Disqualification Act 1986 (CDDA 1986) against the seven trustees of Kids Company and its CEO. It illustrates well the tension between the role of a fulltime paid CEO of a large charity and the role of its board as voluntary trustees/directors.
At the end of 2020, The Charity Governance Code was updated or 'refreshed' as it is termed on its website.
Anthony Collins Solicitors is today (Thursday 11 February) revealing the scale of its social impact during 2020.
In their first podcast of this series, current and future trainees will discuss their journey and route to securing a training contract at Anthony Collins Solicitors.
A recent prosecution by the Health and Safety Executive ("HSE") demonstrates the importance of organisations regularly inspecting, maintaining, and if necessary, repairing or replacing street furnitur
To receive invitations to our events, as well as information and articles on legal issues and sector developments that are of interest to you, please sign up to Newsroom.