Midland Expressway Ltd v Carillion Construction Ltd & Ors
The provisional sums are to be omitted from the contract price and replaced by the actual value of work or tax as instructed by the employer; the contract does not entitle the contractor to both the provisional sums and the actual value, and the contrary construction would be commercially nonsensical.
- 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 Technology & Construction Court
- Outcome
- Appeal dismissed
- Legal Topics
- Interpretation of Provisional Sums, Contract Price Adjustment, Construction Contracts
Case Brief
Summary, issues, holding and outcome
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Parties
Midland Expressway Limited
Claimant/respondent
Carillion Construction Limited & Ors
Defendants/appellants
Procedural Posture
Civil Appeal / Appeal From Technology & Construction Court
Legal Issues
- 1 Whether the contract entitles the contractor to payment of both the provisional sums and the actual value of work/tax, or only the actual value as instructed by the employer
- 2 Proper construction of clauses relating to provisional sums in the contract
Ratio Decidendi
The provisional sums are to be omitted from the contract price and replaced by the actual value of work or tax as instructed by the employer; the contract does not entitle the contractor to both the provisional sums and the actual value, and the contrary construction would be commercially nonsensical.
Court Disposition
Appeal dismissed
Orders
- Appeal dismissed; judgment of Technology & Construction Court upheld
Full Case Text
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