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The withholding of payment

By: Series: Contract Journal ; 421(6455) 3 December 2003, 31(1)Publication details: 2003Subject(s): Summary: Examines "Rupert Morgan Building Services (LLC) Ltd v David Jervis and another" ([2003] EWCA Civ 1563, Abs67216) concerning the operation of the Housing Grants, Construction and Regeneration Act 1996 s111 on withholding notices. Jervis (J) was unaware of the requirements of the Act and had not given notice of intention to withhold payment. Rupert Morgan (R) sued J, but J argued they could not be sued for what was not owed. CA ruled an interim certificate determined the sum due, not the actual work done and J were obliged to pay the amount certified. Concludes that if the paying party intends to dispute the amount it must serve a s111 withholding notice, regardless of the nature of the complaint.

Examines "Rupert Morgan Building Services (LLC) Ltd v David Jervis and another" ([2003] EWCA Civ 1563, Abs67216) concerning the operation of the Housing Grants, Construction and Regeneration Act 1996 s111 on withholding notices. Jervis (J) was unaware of the requirements of the Act and had not given notice of intention to withhold payment. Rupert Morgan (R) sued J, but J argued they could not be sued for what was not owed. CA ruled an interim certificate determined the sum due, not the actual work done and J were obliged to pay the amount certified. Concludes that if the paying party intends to dispute the amount it must serve a s111 withholding notice, regardless of the nature of the complaint.