Midland Expressway Ltd v Carillion Construction Ltd & Ors [2006] EWCA Civ 936 (15 June 2006)

Midland Expressway Ltd v Carillion Construction Ltd & Ors [2006] EWCA Civ 936 (15 June 2006)

Provisional sums are not payable unless instructed by the employer; actual expenditure replaces provisional sums in the contract price, and the sums are omitted if not used, in accordance with the express provisions of the contract.

Citation
[2006] EWCA Civ 936
Parties
Claimant/respondent: Midland Expressway Limited; Defendants/appellants: Carillion Construction Limited & Ors
Jurisdiction
England and Wales
Judgment Date
15 June 2006
Procedural Posture
Civil Appeal / Appeal From Queen's Bench Division, Technology & Construction Court
Outcome
Appeal dismissed
Legal Topics
Interpretation of Provisional Sums, Contract Price Adjustment, Payment Entitlement
Construction Law Contract Law Interpretation of Provisional Sums Contract Price Adjustment Payment Entitlement

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Parties

Midland Expressway Limited

Claimant/respondent

Carillion Construction Limited & Ors

Defendants/appellants

Procedural Posture

Civil Appeal / Appeal From Queen's Bench Division, Technology & Construction Court

Legal Issues

  1. 1 Whether provisional sums in the contract are to be omitted and replaced by actual expenditure or paid in addition to actual expenditure
  2. 2 Proper construction of Clause 36.3 regarding provisional sums

Ratio Decidendi

Provisional sums are not payable unless instructed by the employer; actual expenditure replaces provisional sums in the contract price, and the sums are omitted if not used, in accordance with the express provisions of the contract.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed; judgment of Jackson J upheld; provisional sums to be omitted and actual expenditure substituted in contract price.