Case Study – Payment Dispute – Subcontractor, A S Building Contractors Ltd – Contra Charge Deduction Recovered

May 11, 2021

Project Overview
Acting on behalf of Subcontractor, A S Building Contractors Ltd, Arbicon made a successful claim in a dispute which arose over a Contra Charge being taken from our Client without any substantiating evidence.

The Building Employer alleged that there was an issue with one window for one individual plot but refused to provide any supporting information, cynically deducting £1,500 from our Client’s Account.

Solution
Given our extensive experience in construction cost values, disputes and contractual rights, we were able to very quickly and successfully bring a claim and the sum due was recovered.

The Main Contractor was unable to provide any evidence to support their allegations and had not invited our Client to address the alleged defect issue.

In this case, the Main Contractor also failed to notify the payment due. Arbicon submitted a letter of claim to the Main Contractor, detailing the payment due dates and that our Client’s payment applications were Default Payment Notices as there was a lack of Payment or Pay Less Notice. The Main Contractor served a purported Pay Less Notice, but this was served too late and failed to state the basis for calculation, making their Pay Less Notice defective and void. Our Client’s payment applications were the sum legally due and the Main Contractor was in breach of contract for non-payment.

Under the threat of adjudication and setting out our Client’s position, which could not be defended, this matter ended swiftly with payment in full with only a letter sent.

Arbicon Comment
“We deal with any value of claim and this is a good example of a very low value one. We obtained the result at a very low cost as we had the cards to play here with contractual rights and facts making it an easy swift win. We were delighted with the outcome in recovering payment for our Subcontractor Client.”
Jonathan Nugent, Managing Director, Arbicon ADR Ltd

Client Comment
“We found Arbicon very helpful and informative in our initial discussions, with costs and strategy made clear. Our claim was a low value one but important to us and it was disappointing that we were being badly treated having built over 300 houses for this Main Contractor. We were unaware of the powerful rights we had and needed assurance that we could pursue the claim commercially. Arbicon provided all of that and were totally sensitive to the cost effectiveness and helped us get payment for the contra charge deducted with one letter at a low cost. Totally worth every penny. Very professional and we would not hesitate to use Arbicon’s dispute resolution services in the future. Thank you Arbicon – Great job.”
Ruth Beard, A S Building Contractors Ltd