Cases - Aveat Heating Ltd v Jerram Falkus Construction Ltd

Record details

Name
Aveat Heating Ltd v Jerram Falkus Construction Ltd
Date
[2007]
Citation
EWHC 131 (TCC)
Legislation
Keywords
Adjudicators decision valid if issued after the time allowed
Summary

The referral is issued upon receipt by the adjudicator and not upon despatch by the referring party.

The judge found that clause 38A of GC/Works subcontract that provided that the adjudicator’s decision shall be valid if issued after the time allowed was contrary to section 108(2)(c) of the Housing Grants, Construction and Regeneration Act 1996 and therefore the adjudication provisions in the scheme applied. However this reasoning has been subject to some criticism on the basis that the time for issuing the decision should be distinguished from the time for making the decision. Provided that the decision is reached within the time allowed, there is no apparent reason why a clause allowing for its validity notwithstanding that it was issued late should contravene the Act.

With regard to the effect of contractual adjudication provisions that are not compliant the requirements of the Housing Grants, Construction and Regeneration Act 1996 the judge concluded that the effect of such non-compliant provisions is that there are then two sets of adjudication provisions, contractual and scheme, and it is up to the party initiating the adjudication to decide which set he intends to use.