Bellway Homes Ltd v Surgo Construction Ltd [2024] EWHC 269 (TCC) (12 February 2024)

Bellway Homes Ltd v Surgo Construction Ltd [2024] EWHC 269 (TCC) (12 February 2024)

The bespoke contract terms for adjudication did not contravene HGCRA; the timetable and panel selection were compliant, and the implied duty of co-operation ensured access to adjudication. The contract expressly permitted recovery of overpayments at any time, including at interim stage, via clause 4.9A. The adjudicator was validly appointed and had jurisdiction. Bellway is entitled to enforce the adjudicator's decision and recover the sum awarded.

Citation
[2024] EWHC 269 (TCC)
Parties
Part 7 Claimant / Part 8 Defendant: Bellway Homes Limited; Part 7 Defendant / Part 8 Claimant: Surgo Construction Limited
Jurisdiction
England and Wales
Judgment Date
12 February 2024
Procedural Posture
High Court Technology and Construction Court Judgment / Post Hearing Judgment on Summary Enforcement and Declaratory Relief
Outcome
Judgment for Bellway Homes Limited; adjudicator's decision enforced; declaratory relief denied to Surgo Construction Limited.
Legal Topics
Adjudication Enforcement, Payment Provisions, Jurisdiction of Adjudicator, Interpretation of Bespoke Contract Terms, HGCRA Compliance
Construction Law Contract Law Adjudication Enforcement Payment Provisions Jurisdiction of Adjudicator Interpretation of Bespoke Contract Terms HGCRA Compliance

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Parties

Bellway Homes Limited

Part 7 Claimant / Part 8 Defendant

Surgo Construction Limited

Part 7 Defendant / Part 8 Claimant

Procedural Posture

High Court Technology and Construction Court Judgment / Post Hearing Judgment on Summary Enforcement and Declaratory Relief

Legal Issues

  1. 1 Was the adjudicator validly appointed under the contract and HGCRA?
  2. 2 Is Bellway entitled to recover overpayments at interim stage or only at final account?
  3. 3 Do bespoke contract terms permit negative interim certificates and repayment obligations?

Ratio Decidendi

The bespoke contract terms for adjudication did not contravene HGCRA; the timetable and panel selection were compliant, and the implied duty of co-operation ensured access to adjudication. The contract expressly permitted recovery of overpayments at any time, including at interim stage, via clause 4.9A. The adjudicator was validly appointed and had jurisdiction. Bellway is entitled to enforce the adjudicator's decision and recover the sum awarded.

Court Disposition

Judgment for Bellway Homes Limited; adjudicator's decision enforced; declaratory relief denied to Surgo Construction Limited.

Orders

  • Bellway entitled to summary judgment for £1,076,220.82 against Surgo.
  • Declaration: In relation to interim payments, there is no entitlement on the part of Bellway to be paid sums by Surgo on an immediate (or 'smash and grab') basis solely as a result of the issuing of the Interim Certificate containing a negative valuation.