PC Harrington Contractors Ltd v Multiplex Constructions (UK) Ltd [2007] EWHC 2833 (TCC) (30 November 2007)

PC Harrington Contractors Ltd v Multiplex Constructions (UK) Ltd [2007] EWHC 2833 (TCC) (30 November 2007)

The sum of £2,301,608.45 in the interim certificate does not represent an amount certified as due and payable to PCH; it is merely the aggregate of positive items before deductions. The contract and certificate make clear that, after deductions and withholdings, Multiplex does not accept that any sum is due to PCH. Therefore, PCH cannot claim that it starts the adjudication with £2.3 million in hand.

Citation
[2007] EWHC 2833 (TCC)
Parties
Claimant: P C Harrington Contractors Limited; Defendant: Multiplex Constructions (UK) Limited
Jurisdiction
England and Wales
Judgment Date
30 November 2007
Procedural Posture
Construction Contract Dispute / Application for Declaration Regarding Interim Payment Certificate and Adjudication
Outcome
Application dismissed
Legal Topics
Interim Payment Certificates, Withholding Notices, Adjudication Under Construction Contracts, Interpretation of Payment Clauses, Housing Grants Construction and Regeneration Act 1996
Construction Law Contract Law Interim Payment Certificates Withholding Notices Adjudication Under Construction Contracts Interpretation of Payment Clauses Housing Grants Construction and Regeneration Act 1996

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Parties

P C Harrington Contractors Limited

Claimant

Multiplex Constructions (UK) Limited

Defendant

Procedural Posture

Construction Contract Dispute / Application for Declaration Regarding Interim Payment Certificate and Adjudication

Legal Issues

  1. 1 Whether Multiplex's interim payment certificate certified £2,301,608.45 as due and payable to PCH
  2. 2 Whether Multiplex can pursue adjudication for sums already included in deductions under the interim certificate
  3. 3 Proper construction of payment and withholding provisions under the subcontract and the Housing Grants Construction and Regeneration Act 1996

Ratio Decidendi

The sum of £2,301,608.45 in the interim certificate does not represent an amount certified as due and payable to PCH; it is merely the aggregate of positive items before deductions. The contract and certificate make clear that, after deductions and withholdings, Multiplex does not accept that any sum is due to PCH. Therefore, PCH cannot claim that it starts the adjudication with £2.3 million in hand.

Court Disposition

Application dismissed

Orders

  • Declaration sought by PCH refused
  • Court to hear counsel on further orders in light of the judgment