Jurisdiction(s):
United Kingdom

England and Wales: Stay of termination account adjudication enforcement under CPR 83.7(4) pending Supreme Court appeal due to insolvency risk (Providence v Hexagon)

Published on: 06 October 2025

Published by a LexisNexis Construction expert

Legal News

Article summary

What are the practical implications of this case?

The most recent ruling in the Providence v Hexagon dispute confirms that the courts can stay enforcement of adjudication awards when the cashflow advantage is outweighed by the danger of an employer paying monies it cannot later reclaim if the contractor becomes insolvent. Where an adjudicator finds for the contractor, yet the contractor faces insolvency risk and connected court proceedings are still on foot, the court may grant a stay on enforcement of the adjudicator’s decision, particularly where the outcome of those linked proceedings will determine whether the employer could ultimately recover sums that would otherwise have been paid. Contractors experiencing financial difficulty should therefore consider carefully whether to commence further proceedings until the first matter has been finally resolved.

What was the background?

Providence Building Services Ltd (Providence) contracted with Hexagon Housing Association Ltd (Hexagon) under a JCT Design and Build Contract 2016 for a residential development. During the project Hexagon had a track record of late payment, and, ultimately, Providence purported to terminate for repetition of a specified default pursuant to clause 8.9.4 of the contract...

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