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England and Wales High Court (Technology and Construction Court) Decisions |
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You are here: BAILII >> Databases >> England and Wales High Court (Technology and Construction Court) Decisions >> Quietfield Ltd v Vascroft Contractors Ltd [2006] EWHC 174 (TCC) (02 February 2006) URL: http://www.bailii.org/ew/cases/EWHC/TCC/2006/174.html Cite as: [2006] EWHC 174 (TCC) |
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QUEEN'S BENCH DIVISION
TECHNOLOGY AND CONSTRUCTION COURT
133-137 Fetter Lane London, EC4A 1HD |
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B e f o r e :
____________________
QUIETFIELD LIMITED |
Claimant |
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- and - |
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VASCROFT CONTRACTORS LIMITED |
Defendant |
____________________
Midway House, 27/29 Cursitor Street, London EC4A 1LT.
Telephone No: 020 7405 5010. Fax No: 020 7405 5026
____________________
MR. ABDUL JINADU (instructed by Messrs. Clarkslegal LLP) for the Defendant
____________________
Crown Copyright ©
MR. JUSTICE JACKSON:
Part 1. Introduction
Part 2. The Facts
"We now enclose the following further documentation to assist in your assessment of our entitlement and to enable you to fix a revised Completion Date.
- Extension of Time Request; Narrative.
- Schedule of Delays on Contract Works: orders.
Our conclusion from the attached is that this document demonstrates that we have an entitlement to an extension of time for a period that we estimate to be 462 day [or 69 weeks] and we accordingly request that you revise the Date for Completion from 12th February 2004 to 9th June 2005.
Please note that above analysis refers to the activities as per the contract programme only and does not take into account other Architects' Instructions and/or variations. This information will be forwarded to you in due course and we will of course keep you up to date with regards any material change in the above estimate."
1. Builder's work in connection with services;
2. Underpinning to link stair;
3. Roof plant base;
4. Gypsum Ceiling;
5. Bathroom Installation and 2nd fix plumbing;
6. Marble to bathroom;
7. General decoration;
8. Carpentry and joinery 2nd fix;
9. Break out concrete to ground floor;
10. AC plantroom and chiller room;
11. Boiler room installations;
12. Final fix bathroom accessories.
"The cause of the delay is the on going work being carried out by others, specifically the Employer's marble and joinery contractors, which is preventing us from completing our works.
The cause of this delay is a Relevant Event (25.4.8.1) and a Relevant Matter (26.2.4.1) under this contract.
We do not currently know how long these contractors will be working on site and preventing us from progressing our works, because the Employer has not issued us with a programme. However, we make an estimation that they will be on site until 1st July 2005.
Once the marble contractor has completed his works, we then have to complete the second fix electrical and sanitaryware installations. The contract programme allows 19 weeks for this activity. However, some of the work has already been done, and we estimate that we will require 9 weeks to complete this activity once the delay to our works ends. The contract programme shows a further 6 weeks of work after completion of this activity, to complete remaining works before Practical Completion.
We therefore expect that the effect of this relevant event to be a delay to the completion of the works until 12 weeks after 1st July 2005.
We therefore herewith apply for an extension of time such that the Date for Completion is revised to 23rd September 2005."
It can be seen from the reference in this letter to clause 26.2.4.1 that Vascroft desired not only an extension of time under clause 25 but also some reimbursement of loss and expense under clause 26.
"Notice of Adjudication
We have been engaged by, and act for and on behalf of Vascroft Contractors Limited, in connection with the dispute that has arisen on the above project.
As you are aware, and as is evidenced by records, Vascroft's entitlement to an extension of time, its entitlement to be paid interest on late payments and its entitlement to be paid a mark up on employer supplied items and domestic sub-contractors are a matter of dispute between you and Vascroft. We are therefore instructed to serve upon you this Notice of Application.
We append our Particulars of Notice of Adjudication.
We have today applied to the President/Vice President of the Royal Institution of Chartered Surveyors for the appointment of an Adjudicator."
"The Date for Completion is:- 12th February 2004.
2.6.1 VCL has notified the Architect of various delays during the course of the works.
2.6.2 VCL has applied for two Extensions of Time.
2.6.3 The Architect has failed to grant an Extension of Time in respect of either Application, or make a declaration that none is due, either within the periods stated within The Conditions, or at all.
2.6.4 Accordingly, the Date for Completion remains unaltered at 12th February 2004 and is a matter of dispute between the Parties.
2.6.5 Practical Completion has not yet been achieved."
"The Adjudicator is requested to Decide that VCL is entitled to an Extension of Time which revises the Due Date for Completion to 23rd September 2005, or any other such date as the Adjudicator shall Decide."
(i) Vascroft's letters dated 2nd September 2004 and 22nd April 2005 both constituted valid notices under clause 25 of the contract.
(ii) Nevertheless Vascroft have not provided either evidence or reasoned analysis to demonstrate that the events upon which Vascroft rely caused delay to the completion of the works.
"For the reasons set out above based on the evidence placed before me I find that Vascroft have failed to discharge the burden of proof placed upon them to evidence that they are entitled to an extension of time and I therefore decline to refix the date for completion as 23rd September 2005 or any such other date."
Part 3. The Present Proceedings
Part 4. The Relevant Law
"1.(1) Any party to a construction contract ('the referring party') may give written notice (the 'notice of adjudication') of his intention to refer any dispute arising under the contract, to adjudication.
(2) The notice of adjudication shall be given to every other party to the contract.
(3) The notice of adjudication shall set out briefly –
(a) the nature and a brief description of the dispute and the parties involved,
(b) details of where and when the dispute has arisen,
(c) the nature of the redress which is sought, and
(d) the names and addresses of the parties to the contract (including, where appropriate, the addresses which the parties have specified for the giving of notices).
….
9.(1) An adjudicator may resign at any time on giving notice in writing to the parties to the dispute
(2) An adjudicator must resign where the dispute is the same or substantially the same as one which has previously been referred to adjudication, and a decision has been taken in that adjudication.
….
23.
….
(2) The decision of the adjudicator shall be binding on the parties, and they shall comply with it until the dispute is finally determined by legal proceedings, by arbitration (if the contract provides for arbitration or the parties otherwise agree to arbitration) or by agreement between the parties."
"Thus Mr. Miller did not decide that EDS was not entitled to any extension of time; he decided merely that EDS had not discharged the burden of showing that they were entitled to an extension of time on the ground of critical delay to the bedrooms."
"Miss Randall submitted that in carrying out the review required by clause 11.7 and in reaching his decision Mr. Hough necessarily had to, and did, reconsider the facts and matters that had previously been adjudicated upon. The conclusion reached by Mr. Hough relative to those facts and matters was contrary to that reached in the first adjudication. Mr. Hough, accordingly, exceeded his jurisdiction, said Miss Randall. It may well be true that Mr. Hough did consider the facts and matters considered by Mr. Miller in reaching his conclusion. That in itself in my judgment is not objectionable. In my judgment Mr. Hough was not invited to trespass on Mr. Miller's decision, nor did he do so. I reject this argument of Miss Randall."
(i) Where the contract permits the contractor to make successive applications for extension of time on different grounds, either party, if dissatisfied with the decisions made, can refer those matters to successive adjudications. In each case the difference between the contentions of the aggrieved party and the decision of the architect or contract administrator will constitute the "dispute" within the meaning of section 108 of the 1996 Act.
(ii) If the contractor makes successive applications for extension of time on the same grounds, the architect or contract administrator will, no doubt, reiterate his original decision. The aggrieved party cannot refer this matter to successive adjudications. He is debarred from doing so by paragraphs 9 and 23 of the Scheme and section 108(3) of the 1996 Act.
(iii) Subject to paragraph (iv) below, where the contractor is resisting a claim for liquidated and ascertained damages in respect of delay, pursued in adjudication proceedings, the contractor may rely by way of defence upon his entitlement to an extension of time.
(iv) However, the contractor cannot rely by way of defence in adjudication proceedings upon an alleged entitlement to extension of time which has been considered and rejected in a previous adjudication.
Part 5. Application to the Present Case
Part 6. Conclusion