Penwith District Council v. VP Developments Ltd [1999] EWHC Technology 231 (21st May, 1999)

Penwith District Council v. VP Developments Ltd [1999] EWHC Technology 231 (21st May, 1999)

The provision of a statement of the Ascertained Final Sum to the contractor is not a condition precedent to the issue of a final certificate under the JCT 1980 form with amendments. The contract does not require a minimum period for the contractor to consider the AFS before the final certificate is issued, and the CA is authorized to issue the final certificate as soon as the AFS is sent. The final certificate is conclusive evidence that all contractual terms affecting the AFS have been given effect, except in cases of fraud, accidental error, or where proceedings are commenced within the specified period.

Citation
[1999] EWHC Technology 231
Parties
Plaintiff: Penwith; Defendant: VP
Jurisdiction
England and Wales
Procedural Posture
Appeal From Arbitration Award Under Arbitration Act 1979 / Judgment on Appeal
Outcome
Appeal allowed; arbitrator's awards reversed.
Legal Topics
Interpretation of JCT Standard Form Contracts, Final Certificate Conclusiveness, Condition Precedent in Construction Contracts
Construction Law Contract Law Arbitration Interpretation of JCT Standard Form Contracts Final Certificate Conclusiveness Condition Precedent in Construction Contracts

Case Brief

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Parties

Penwith

Plaintiff

VP

Defendant

Procedural Posture

Appeal From Arbitration Award Under Arbitration Act 1979 / Judgment on Appeal

Legal Issues

  1. 1 Whether provision of a statement of the Ascertained Final Sum (AFS) to the contractor is a condition precedent to the issue of a final certificate under the JCT 1980 form with amendments.
  2. 2 Whether the final certificate is conclusive evidence that all contractual terms affecting the AFS have been given effect, subject to exceptions.

Ratio Decidendi

The provision of a statement of the Ascertained Final Sum to the contractor is not a condition precedent to the issue of a final certificate under the JCT 1980 form with amendments. The contract does not require a minimum period for the contractor to consider the AFS before the final certificate is issued, and the CA is authorized to issue the final certificate as soon as the AFS is sent. The final certificate is conclusive evidence that all contractual terms affecting the AFS have been given effect, except in cases of fraud, accidental error, or where proceedings are commenced within the specified period.

Court Disposition

Appeal allowed; arbitrator's awards reversed.

Orders

  • The arbitrator's awards are varied to reverse the declaration and order as to costs in each case.
  • If required, either award may be remitted for determination of any surviving matters by the arbitrator.