Smash and grab adjudications: what about insolvency?

Stephanie canham landscape

A recent case may herald a move away from upholding ‘smash and grab’ adjudications where insolvency is a factor

It should come as no surprise to anyone working in or involved with the building industry that the Housing Grants, Construction and Regeneration Act 1996 (the Construction Act) requires a paying party to a construction contract to serve a pay less notice on the payee if it intends to withhold money. The act lays downs a strict timescale for such notices, and the consequences of serving a notice that is defective or late can be dire: the unpaid party may suspend performance and/or commence adjudication proceedings. 

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