PC Harrington Contractors Ltd v Multiplex Constructions (UK) Ltd

PC Harrington Contractors Ltd v Multiplex Constructions (UK) Ltd

The sum of £2,301,608.45 in the interim certificate is not an admission by Multiplex that this amount is due and payable to PCH; it is merely the aggregate of positive items in Multiplex's calculations. Deductions and withholdings under clauses 21.10 and 21.11 are integral to the calculation, and Multiplex does not accept that PCH is entitled to any payment. Accordingly, PCH cannot claim that Multiplex has certified or accepted that £2,301,608.45 is now due and payable.

Parties
Claimant: P C Harrington Contractors Limited; Defendant: Multiplex Constructions (UK) Limited
Jurisdiction
England and Wales
Judgment Date
30 November 2007
Procedural Posture
Commercial Construction Dispute / Ruling on Application for Declaration Prior to Adjudication
Outcome
Application for declaration dismissed
Legal Topics
Interim Payment Certificates, Deductions and Withholdings, Adjudication, Statutory Compliance, Contract Interpretation
Construction Law Contract Law Interim Payment Certificates Deductions and Withholdings Adjudication Statutory Compliance Contract Interpretation

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Parties

P C Harrington Contractors Limited

Claimant

Multiplex Constructions (UK) Limited

Defendant

Procedural Posture

Commercial Construction Dispute / Ruling on Application for Declaration Prior to Adjudication

Legal Issues

  1. 1 Whether Multiplex's interim payment certificate constitutes an admission that £2,301,608.45 is due and payable to PCH
  2. 2 Whether Multiplex can proceed with adjudication for its claim regarding defective floors despite the certificate
  3. 3 Proper interpretation of clauses 21.9, 21.10, and 21.11 of the subcontract in light of the Housing Grants Construction and Regeneration Act 1996

Ratio Decidendi

The sum of £2,301,608.45 in the interim certificate is not an admission by Multiplex that this amount is due and payable to PCH; it is merely the aggregate of positive items in Multiplex's calculations. Deductions and withholdings under clauses 21.10 and 21.11 are integral to the calculation, and Multiplex does not accept that PCH is entitled to any payment. Accordingly, PCH cannot claim that Multiplex has certified or accepted that £2,301,608.45 is now due and payable.

Court Disposition

Application for declaration dismissed

Orders

  • Declaration sought by PCH declined
  • Counsel to be heard on consequential orders