Case Study – Settlement Agreement for Subcontractor, Broadstairs Scaffolding

April 7, 2021

Project Overview
Arbicon negotiated a Settlement Agreement to recover money for a Subcontractor Client who was in dispute with a Main Contractor over payments.

Our Client, Broadstairs Scaffolding Ltd, had undertaken works in Ramsgate, consisting of the erection, hire and dismantle of scaffolding on behalf of a Main Contractor.

The Parties were in dispute concerning the works, the sums due, and to whom the sums were payable to. Broadstairs considered sums were due to them, whilst the Main Contractor believed they were due sums from Broadstairs.

The subcontract works commenced on a verbal contract only between the parties, based on implied statutory terms.

Solution
Arbicon worked closely with our Subcontractor Client to establish what payments were due. An interim and final account was submitted to the Main Contractor for payment, which was disputed with a Pay Less Notice and alleged contra charges.

As there was no written contract, there were no express terms as to programme, hire periods, payment, methodology, specification or design. This lack of express terms was a fundamental cause of the dispute as each party had differing views on their respective rights and obligations.

The parties agreed to enter negotiations with the intent of reaching a full and final settlement of the account. Successful negotiations resulted in a Settlement Agreement, with our client obtaining payment of £30,000 (plus VAT)