Smash-And-Grab Claim

The Case

Smash-and-grab; this is a term coined where the Paying Party has failed to issue Payment Notices or Payless Notice as set out in the contract or the Scheme for Construction contracts.
There have been a number of legal cases which have established that the party that has not been issued with the right Notices, in the correct format, has a right to be paid in full the amount of its relevant application for payment.

There is no doubt that this is a draconian piece of law, especially as it has been established the smash-and-grab payment has to be made before any action can be taken to establish the true value of the work undertaken. This does emphasise the need for all parties responsible for making payments to understand their obligations fully.

It might be helpful to understand that the legislation that was introduced setting out the processes for payment in construction was introduced to help with poor payment practices that were impacting cash flow within the industry, which, in turn, was impacting the wider economy.

The Resolution

At Construction Dispute Experts, we can help with this.
There are very few defences to resist a smash-and-grab adjudication claim, but at Construction Dispute Experts, we have the in-depth knowledge to win against all odds, adjudication claims where the party expecting a good outcome has failed to themselves to understand their own obligations in making the application for payment.

Construction Dispute Experts have a track record of success in both prosecuting Adjudication claims for the ‘victims’ of poor payment processes and defending claims where it is possible to do so.