Raising withholding notices

Brewer, G.

Raising withholding notices - 2004 - Contract Journal 424(6486) 28 July 2004, 26(1) .

Discusses "MJ Gleeson Group Plc v Devonshire Green Holding Ltd" (TCC, unreported) which examined the payment provisions of the JCT Standard Form of Contract With Contractor's Design (WCD 98) in the context of an adjudicator's decision that the employer should pay the contractor the amount of its interim application for payment. Points out that WCD 98 differs from other JCT contracts in the way it deals with interim payments. When a dispute arose as to the amount payable against an interim application it was referred to adjudication. Adjudicator held that D was obliged to pay G the amount stated on the contractor's application. D refused to pay and the matter was referred to TCC for enforcement of the decision. D argued a subsequent application for an interim payment by G should defer payment, but judge refuted this claiming D was still bound by the earlier adjudicator's decision. Concludes a withholding notice may not be raised to defeat a sum ordered to be paid by an adjudicator. Under WCD 98 the contractor's application will become the amount due for interim payment unless the employer has issued notices of payment or withholding.


WITHHOLDING NOTICES
JCT WCD 1998
MJ GLEESON GROUP PLC V DEVENSHIRE GREEN HOLDING LTD
PAYMENT PROVISIONS
INTERIM PAYMENTS
ADJUDICATION