High Court orders Wates to pay compensation to sub-contractor after delaying its start on site

Legal

A judge has ordered Wates Construction to pay more than 拢280,000 to one of its brickwork subcontractors after it delayed the firm starting on site.

Roe Brickwork helped to build three blocks of flats as part of a 拢200m redevelopment of the Ocean Estate in Tower Hamlets in north-east London where Wates was the main contractor.

But the firm had its work delayed by Wates by around six months, causing it 鈥渟ignificant loss and expense鈥, Roe said.

The firm鈥檚 initial claim comprised loss of overheads and profits totalling 拢173,000; loss of productivity totalling 拢465,000; and additional supervision and management costs of 拢122,000.

Roe was eventually awarded 拢381,459.75 plus interest at 3.5% from 31 January by an adjudicator, but the case was later referred to a judge because Wates disputed the way the adjudicator came to this figure and whether he was acting within his powers.

But in his judgement on Monday (11 November) Mr Justice Edwards-Stuart upheld the decision and said Wates would have to pay the sum, less 拢97,992 that had already been paid
to Roe.

He said: 鈥淚 consider that the adjudicator neither exceeded his jurisdiction nor acted in breach of the rules of natural justice but, even if he did, it had no effect on the quantum of the claim that was adverse to the defendant鈥檚 position.

鈥淎ccordingly, the breach - if there was one - was not a material breach.鈥

He also said the firm was entitled to recover half of the adjudicator鈥檚 fees from Wates.

Jamie Roe, commercial director of Roe Brickwork, said: 鈥淚t was with regret that we had to resort to adjudication with Wates, but the enforcement of the award is a great relief to us.鈥

Stuart Togwell, Wates Group鈥檚 commercial director said the project had been 鈥渃omplex鈥.

He added: 鈥淥bviously we鈥檙e disappointed that this issue was resolved through the courts, however, we are proud to now be in a position to handover phase one of Ocean鈥檚 Estate on time.鈥