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United Kingdom

Adjudication: TCC upholds fair-and-reasonable overall valuation; macro approach defeats natural justice and reasons challenge (Clegg Food v Prestige Car) (England and Wales)

Published on: 26 August 2025

Published by a LexisNexis Construction expert
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Article summary

Clegg Food Projects Ltd v Prestige Car Direct Properties Ltd [2025] EWHC 2173 (TCC)

What are the practical implications of this case?

Clegg Food v Prestige Car confirms that, in payment disputes over overall or global valuations, adjudicators have wide latitude in their determinations, including making a 'fair and reasonable' valuation drawn from the material and submissions advanced by the parties. Losing parties should take a pragmatic stance when considering enforcement challenges—where the outcome falls within the spectrum advanced by the parties, minor irregularities or high-level reasoning will not unsettle the decision unless there is a material breach of natural justice. Highly detailed natural justice complaints, where both sides sought a global valuation, are very unlikely to succeed.

What was the background?

The claimant contractor (Clegg Food) and the defendant employer (Prestige Car) entered into a JCT Design and Build contract for a leisure and retail centre. After practical completion, a dispute arose regarding Application for Payment No 37 (Application 37), addressing the valuation of agreed variations (Relevant Changes), entitlements to extensions of time (EOTs), and associated prolongation costs...

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