CONTRACT MADE ORALLY NOT DEEMED TO BE A CONTRACT IN WRITING FOR PURPOSES OF PART II OF THE HOUSING GRANTS, CONSTRUCTION AND REGENERATION ACT 1996

Grovedeck Ltd v Capital Demolition Ltd (Technology and Construction Court, 24 February 2000)

In Grovedeck Ltd v Capital Demolition Ltd, Technology and Construction Court, 24 February 2000, Judge Bowsher QC concluded that a contract, made orally between the parties in the first instance, was not deemed by Part II of the Housing Grants, Construction and Regeneration Act 1996 to be a contract in writing simply because the parties had made written submissions to the adjudicator. Section 107(5) of the Act applies only to adjudication, arbitral or legal proceedings prior to the adjudication proceedings in question; were it otherwise an adjudicator who had no jurisdiction could give himself jurisdiction by the simple expedient of obtaining written submissions from the parties. It was also held that, while it is not possible to refer more than one dispute or more than one contract to adjudication without the consent of the other party where the statutory scheme is applicable, it is possible to do this where the requirements of s108 have been satisfied so that the statutory scheme is not applicable.