ADJUDICATION, GROUNDS OF CHALLENGE AND THE POWER TO AWARD INTEREST

Carillion Construction Ltd v Devonport Royal Dockyard [2005] EWHC 778 (TCC), 26 April 2005

In Carillion Construction Ltd v Devonport Royal Dockyard [2005] EWHC 778 (TCC), 26 April 2005, Mr Justice Jackson rejected various challenges to the decision of an adjudicator. In reaching his conclusion he helpfully set out a number of principles which underpinned the adjudication process generally and some of which were applicable to the particular facts of this case. He also held that paragraph 20(c) of the Scheme for Construction Contracts (England and Wales) Regulations 1998 creates ‘a freestanding power to award interest’. It is not the case that an adjudicator can only award interest where there is contractual provision for the payment of interest. The statutory power will give way in the face of an inconsistent contractual provision but the ability to claim interest is not dependent upon a contractual entitlement to interest.