Effective Recovery Strategies in Construction Industry

1. Getting Paid !? Getting Paid ! ? Presentation to the Forum for the Built Environment Wednesday 5th December 2007 Peter Blake Prettys 01473 232121 pblake@prettys.co.uk

2. Getting Paid !? Recovery of money: outline of presentation • Insolvency process • Litigation/ arbitration • Alternative Dispute Resolution • Adjudication – recent lessons

3. Insolvency process • Uncontested claims only • Consequences of abuse • Winding Up/ Bankruptcy , a discretionary remedy • Cross claims relevant even where no set off • Interim certificates: • Melville Dundas v George Wimpey, termination on contractor insolvency • Pierce Design International v Johnston, termination on contractor default, sums unreasonably withheld

4. Litigation /arbitration • Agreement to arbitrate • Litigation – the default option • Costs comparisons • Privacy • Technical disputes, choice of tribunal • Time scales • Pre Action Protocol good practice ?

5. Litigation/Arbitration • Litigation: enforcement of adjudicator’s decisions • Litigation: appeals from arbitrations • Litigation/Arbitration: following adjudication

6. Alternative Dispute Resolution/Mediation • Use of mediation in construction claims • TCC survey interim results- mediation used in 32% of settled cases • Impetus for mediation • The parties • Lawyers/advisers • Court orders/guidance • Cost/ time savings

7. Alternative Dispute Resolution/Mediation • Multi party disputes , disparate dispute resolution provisions • Preservation of business relationships • Other forms of ADR – • Expert evaluation • Mini trial • Med arb • Dispute Resolution Boards

8. Adjudication :recent lessons • Complex cases ? • Non compliant rules e.g. GC/Works , CIC , the correct approach • Timing • Decision made on time but delivered late • Adjudicator’s lien ? • Extended timetables – power of referring party – extensions beyond 14 days silence implied consent Yule v Speedwell

9. Adjudication:recent lessons 4. Contract in Writing ? • Completed but unsigned contracts • Submissions in previous adjudications (S.107(5) HGCRA) • Reform 5. Expert Evidence 6. Interim Payments • Variations • Suspension of payments on determination

10. Adjudication: recent lessons 7. Tactical adjudication ? • One contract at a time • Referring party sets parameters of jurisdiction • Appropriation between 2 contracts • Stay/ cross adjudication

11. Litigate or Adjudicate ? • Litigate or Adjudicate ? • Time /money claims – adjudication • Defects, design , professional negligence –litigation • Adjudicating modest claims – costs implications • Is adjudication ever compulsory - DGT Steel and Cladding v Cubitt Building & Interiors ?

12. Getting Paid ! ? Thank you for listening Any questions ? Peter Blake Prettys 01473 232121 pblake@prettys.co.uk