Contractor ordered to pay client £1m after failing to overturn adjudication
Summary
The Technology and Construction Court upheld an adjudication award requiring HG Construction to pay almost £1m to Clerkenwell Lifestyle UK after rejecting the contractor’s argument that additional extension of time had been agreed by email. The judge found the February 2023 correspondence formed part of ongoing discussions about how the contractual mechanism would operate, rather than a clear and binding revision of completion dates.
Why it matters
For residential property surveyors involved in contract administration, this case highlights the importance of clear, documented agreement when extensions of time are discussed. It also underlines how delay events, programme baselines and liquidated damages can become contentious in mixed-use residential schemes.
Key points
- HG Construction was ordered to pay £955,943.43 plus adjudicator’s fees.
- The dispute arose from delays on a project in Clerkenwell, east London, including nine apartments and a hotel.
- The contractor argued an email exchange with the client’s consultant had agreed further extensions of time.
- The court found the email was not a clear, binding agreement to revise completion dates.
- The decision reinforces the evidential importance of consistent delay records and unambiguous contractual correspondence.
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