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Image of Ground Work being carried out - Final Payment Notices

It’s crucial to ensure the precise terms of a construction contract are followed, especially regarding final payment notices. In a recent adjudication, DTM advised Foundation Piling Limited (FPL), the successful Referring Party, and the Adjudicator’s Decision highlighted the financial risks of not following the contractual terms.

FPL was subcontracted to carry out piling work. FPL finished its work and provided its final account. The contractor responded with what it believed was a Final Payment Notice that complied with the subcontract. However, FPL argued that the notice didn’t meet the subcontract’s requirements and was defective. The contractor refused to pay anything more to FPL.

FPL took the matter to Adjudication. The Adjudicator decided that the contractor’s Final Payment Notice was indeed defective as it didn’t “provide a clear calculation showing the basis on which the sum shown therein had been built up”.

As a result, FPL was successful in the Adjudication and received payment along with interest. The contractor also had to cover the Adjudicator’s fees.

This case underscores the importance of following the obligations set out in construction contracts. Without proper explanations, Final Payment Notices may not hold up, leaving parties in dispute. When facing such disputes, it’s crucial to seek expert legal advice.

Legal Advice on a Payment Dispute

Legal professionals provide invaluable guidance on contract interpretation, dispute resolution strategies, and navigating complex legal procedures. They can assess the specifics of your case, advise on your rights and obligations under the contract, and represent your interests effectively. By seeking legal counsel, you can better understand your options, protect your rights, and work towards a fair resolution. Whether you’re dealing with payment disputes, contract disagreements, or other construction-related issues, having experienced legal support can make a significant difference in achieving a favourable outcome.

For more information on our Dispute Resolution services speak to Jim Morris and the disputes team by calling 0151 3210000 / 01244 354800.

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