Surrey and Sussex Healthcare NHS Trust v Logan Construction (South East) Limited
Citation:  EWHC 17 (TCC)
The case arose out of extensive refurbishment works to a hospital. It concerned a claim for declarations in relation to the validity of a contractor’s Interim Payment Notice and a contract administrator’s Pay Less Notice in response. The contractor had won an adjudication on the issues and been awarded £1million, but the employer had commenced Part 8 proceedings to have them finally decided in the TCC. On the Interim Payment Notice, the contractor successfully persuaded the Judge that its Interim Payment Notice was sufficiently clear and unambiguous even though it was presented as part of discussions over a final account valuation. However, the Judge held that the contract administrator’s response was an adequate Pay Less Notice even though he had not presented it as such and appeared to have misunderstood the contractual notice provisions. The case applies and develops the law on the need for the objective assessment of the intention of a sender of a pay less notice.
Gideon Scott-Holland acted for the Claimant