Contractor victorious in late-payments dispute
Top Stories Tamfitronics An East Grinstead contractor has successfully overturned a legal decision that found it was wrong to terminate its contract with a housing association over repeated late payments.The dispute arose from a JCT contract between Providence Building Services Limited and Hexagon Housing Association Limited (Hexagon) for the construction of buildings in Purley, valued at £7.2m.The key issue was whether Providence could terminate its contract after Hexagon failed to pay an invoice on time, even though Hexagon had paid up within 28 days of receiving a previous default notice.Mark London, partner at Devonshires who represented Hexagon, said: “The Court of Appeal’s judgment has introduced a significant risk to employers everywhere who, in the event of a specified default, will face the proverbial sword of Damocles for the remainder of the contract.“Contrary to the way...
