Dispute about interim valuation referable to adjudication

In Working Environments Ltd v Greencoat Construction Ltd [2012] EWHC 1039 (TCC), [2012] All ER (D) 23 (May) Mr Justice Akenhead held that it is not necessary to wait until a valuation falls due for payment before there can be a dispute about an interim valuation of work. A dispute about an interim valuation can arise immediately there is a dispute between the parties about that valuation and it can be referred to adjudication. He also held that the substance of the decision of the adjudicator could be enforced despite the fact that the adjudicator had considered two matters over which he had no jurisdiction. On the facts it was held to be possible to sever these two items and enforce the rest of the decision.

The facts

The defendant contractor was employed as a main contractor to perform substantial fitting out works at existing accommodation in London and it entered into a sub-contract with the claimant under which the claimant agreed to carry out the mechanical services installation for the project. The contract made provision for the claimant to apply for payment on the second to last Friday of each month and for the defendant to issue a payment certificate within one week thereafter. The final date for payment was to be 45 days after receipt of an invoice.