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:
There is no problem with asking for a “valuation” in advance of the application. The problem is thinking that this “valuation” is the application.
Contact Andrew Millross.
Over the past two years, we have seen an increasing number of GDPR claims being made alleging that an individual’s data protection rights have been breached.
Anthony Collins Solicitors are delighted to announce that they have been ranked as a Band 1 firm in Chambers and Partners 2022.
Alice Kinder, pensions and employment solicitor takes on the role in representing and supporting more than 5,500 legal professionals located across Birmingham and the Greater Midlands.
Our annual virtual employment law update catches up on the cases, legislation and changes over the last 12 months.
Anthony Collins Solicitors are presenting a series of podcasts with employees to raise awareness about disabilities around the firm.
Answering key questions about the details and practicalities of mandatory vaccinations in care home settings.
Anthony Collins Solicitors (ACS) has appointed a new partner to its market-leading social housing property team.
On 7 September 2021, the Regulator of Social Housing (RSH) published its annual consumer review.
From today (1 October 2021) there is yet more change on the possession front!
We are delighted to secure our position as a top-tier firm in five of our practice areas in the Legal 500 2022 edition.
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.