Building Law Monthly
Adjudication, interim valuations and final account
Essential Living (Greenwich) Ltd v Elements (Europe) Ltd  EWHC 1400 (TCC), O’Farrell J held that a decision of an adjudicator in relation to the interim valuation of the works
was not binding on the parties for the purpose of determining the Final Trade Contract Sum. The two disputes were not the
same or substantially the same. However, it was held not to follow from this that the decision in the earlier adjudication
was no longer relevant. To the extent that the adjudicator had determined a dispute as to any contractual entitlement to a
variation, or its value, that decision was binding on the parties for the purpose of the Final Trade Contract Sum. This conclusion
underlines the need to examine with care the matters decided in the earlier adjudication. Such an examination raises matters
of “fact and degree” which are not suitable for resolution by way of a “general declaration”. It was therefore held to be
a matter for the construction manager, when carrying out his duties under the contract, to consider all of the evidence put
before him in relation to the disputed items in the final account and to determine whether it is a matter that was decided
in the previous adjudication in which case it continued to remain binding on the parties.
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