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By Tony Bingham2025-09-09T06:00:00
A new ruling underlines the rigidity of the payment process: no pay less or similar notice, then no wiggle room in sum due
On my reading of the recent case of VMA Services Ltd vs Project One London Ltd [2025] EWHC 1815 (TCC) – and on my reading of the blog by the barrister for Project One Ltd – I conclude that he is unsurprised by losing on his first point but completely surprised by losing on his second point. Miffed, I think! Useful lesson, though. The first point is the uphill task of bringing a true-valuation adjudication (TVA) when a smash-and-grab adjudication is still unpaid. The second point is the uphill task of bringing an adjudication that results in a counter-claim for money due.
VMA Services Ltd (VMA) took on the M&E subcontract for main contractor Project One Ltd (POL) at Cheyne Walk, Chelsea. The building will provide offices and shops, with new flats above. The contract documents involved JCT Design and Build Subcontract 2016.
Interim account #8 is when the drama started. The gross valuation by VMA arrived with POL in June 2024. It sought £274,259.81 less retention and previous payments, net claim £106,434.88. By the time of the final due date for the cash to flow, POL had sent neither a sum due notice nor a pay less notice.
The pub quiz question is: Now what? The answer is: The £106,434.88 must be paid, whether right or wrong.
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