The meaning of ‘appropriate deduction’

In Mul v Hutton Construction Ltd [2014] EWHC 1797 (TCC), Akenhead J held that the words ‘appropriate deduction’ in cl 2.30 of the JCT Intermediate Form of Contract (2005) meant a deduction which was reasonable in all the circumstances and could be calculated in one of a number of different ways. He rejected the submission that an ‘appropriate deduction’ would inevitably be measured by reference to the contract rates or priced schedule of works. The term ‘appropriate deduction’ is a neutral term and what may be appropriate in one set of circumstances may be inappropriate in another. This being the case, the inquiry in each case is essentially a factual one and the task of the court is to identify what amounts to an ‘appropriate deduction’ in all the circumstances of the case.