Jurisdiction(s):
United Kingdom

HGCRA 1996 adjudication: 'true value' and 'smash and grab' constitute a single dispute; adjudicator may decide both in one reference—Bellway Homes v Surgo (TCC, England and Wales)

Published on: 17 January 2024

Published by a LexisNexis Construction expert

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Article summary

Bellway Homes Limited v Surgo Construction Limited [2024] EWHC 10 (TCC)

What are the practical implications of this case?

In adjudications governed by the Housing Grants, Construction and Regeneration Act 1996 (HGCRA 1996), a party is permitted to place only one dispute before the adjudicator (HGCRA 1996, s 108(1)). Where more than one dispute is advanced, the adjudicator has no jurisdiction to proceed (Fastrack v Morrison). This decision is the first to address whether a payee’s interim payment claim that proceeds on two alternative footings—(i) the true valuation of the works and/or (ii) entitlement to the sum applied for because no valid payment or pay less notice was served (often termed a ‘smash and grab’ claim)—should be treated as a single dispute. The court concluded that it is one dispute, with the consequence that an adjudicator has jurisdiction to consider both bases within the same reference. The outcome will be of real importance to parties engaged in interim payment contests, as it confirms that valuation and notice-default arguments can be advanced together without fracturing jurisdiction. Accordingly, both routes may properly be determined in a single adjudication...

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