Jurisdiction(s):
United Kingdom

HGCRA 1996 adjudication notices: TCC backs common-sense approach; lesser sums and due-date errors do not invalidate applications (1st Formations v LAPP) (England and Wales)

Published on: 24 June 2025

Published by a LexisNexis Construction expert

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Article summary

1st Formations Ltd v Lapp Industries Ltd [2025] EWHC 1526 (TCC)

What are the practical implications of this case?

This decision underscores that the courts will adopt a common-sense, pragmatic approach to the content of a payee’s notice under the HGCRA 1996 and Part II of the Scheme for Construction Contracts (the Scheme), resisting unduly narrow readings. So long as the notice makes sufficiently clear what sum is sought and the footing for the claim, the court will not seek to interfere or hunt for defects that might render the notice void or ineffectual. Here, the payee’s documents were plainly recognisable as an interim application; they identified the amount asserted as due and the basis upon which that figure had been worked out. The TCC further confirmed that a payment notice is not invalid merely because it asks for a figure below the amount stated as due. If a payment notice includes an incorrect due date, that is an issue for the other party to pick up in its response and does not undermine the validity of the application.

What was the background?...

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