Cases - Clark Contracts v The Burrell Co

Record details

Name

Clark Contracts v The Burrell Co

Date

[2002]

Citation

Adj.L.R. 01/31

Keywords

Contract - construction contract - interim certificates - interim payment - whether there was an entitlement to a sum due under the contract where a sum specified in an interim certificate had not been paid within 14 days of it being issued

Summary

The claimants were employed by the defendant as the main contractors in relation to a redevelopment of 8 flats at Cleveden Drive, Glasgow. The conditions governing the contract were the SBCC Design Portion with Quantities (September 1997 Revision) Building Contract with Scottish Supplement 1980 (Revised, July 1997) to the Conditions of the Standard Form of Building Contract 1980 edition with Quantities. Interim Certificate No. 11 in the gross amount of £486,529.42 was issued and following the issue of previous certificates the defendant had made payment to the claimants of the sum of £451,529.42. Net of retention the sum certified by Interim Certificate No. 11 was £28,525, which together with VAT made the sum brought out in the certificate to be £29,408. In their pleaded case, the claimants relied upon the interim certificate as their entitlement to payment, and did not specify the works which they had performed and which underpinned their claim which had resulted in Interim Certificate No. 11 being issued. It was held that the claimants became entitled to payment of the sum brought out in the interim certificate within 14 days of it being issued. That was an entitlement to payment of a sum due under the contract. In order to reach the figure in the interim certificate the parties had made use of the contractual mechanism.