[2025] EWHC 1526 (TCC)

Fecha: 19-Jun-2025

This judgment was handed down by the court remotely by circulation to the parties’ representatives by email and released to The National Archives. The date and time for hand-down is deemed to be 19 Ju

This judgment was handed down by the court remotely by circulation to the parties’ representatives by email and released to The National Archives. The date and time for hand-down is deemed to be 19 June 2025 at 10.30.

Adrian Williamson KC :

In these Part 8 proceedings, the Claimant (“Formations”) seeks declarations as to the validity of an application for payment (“the Application”) issued by the Defendant (“LAPP”) on 14^th April 2023.

The background to these proceedings is set out in my earlier Judgments dated 25^th March 2025 (extempore) and 16^th April 2025 ([2025] EWHC 943 (TCC)). In short, LAPP persuaded an Adjudicator that the Application was a valid application for payment. She issued a Decision in LAPP’s favour in the amount of £100,000 plus VAT, interest and costs. I granted summary judgment for these sums in my judgment of 16th April 2025. Formations now seek to reverse the Decision and the Judgment by showing that the Application was not, in fact, a valid application for payment.

In this Judgment, I will deal with the matter under the following headings:

The facts;

The Law;

Discussion;

Conclusions.

The facts

These issues arise in the following context. In 2022, LAPP was engaged by Formations under a construction contract (“the Contract”) to carry out works relating to the refurbishment of the reception, business centre, and second and third floors at 71 – 75 Shelton Street, London WC2H 9JQ (“the premises”).

The Contract thereafter grew in scope based on separate quotations and acceptances together with further instructions for variations and work performed thereunder. However, by my Judgment dated 16^th April 2025, I decided that there was a single contract.

The Contract did not contain any payment terms as required by the payment provisions of the Housing Grants, Construction and Regeneration Act 1996 as amended (“the Act”) and so the payment provisions of Part II the Scheme for Construction Contracts 1998 as amended (“the Scheme”) apply as implied terms of the Contract (by section 114(4) of the Act). See further below.

On 14 April 2023, LAPP sent to Formations what they asserted to be an application for an interim payment under the contract (“the Application”).

The covering email from Mr Harris of LAPP stated as follows:

“Please find attached an application for an interim payment for work carried out at Shelton Street. The amount is based on my provisional valuation of the works carried out, and may be subject to any agreed adjustment following assessment by Jonathan Grubb of Northcote Building Consultancy.
I have therefore requested a payment on account of £100,000.00 to cover my costs pending such agreement.
Please note that I have carried out the works in good faith following numerous instructions from yourself, but the payments received so far fall far short of the costs incurred, and it is essential that I receive prompt payment in order to cover those costs, which include the payment of staff, materials, finance costs and VAT.
I would be grateful for a prompt settlement of the amount applied for, pending agreement of the final account with Jonathan Grubb.”2025:19