Clark Contracts Limited -v- The Burrell Co. (Construction Management) Limited

Tuesday, 15 January 2002

Key terms: 
s110 – s 111 – Withholding Notice – Sum Due – Sum Certified

Clark Contracts were employed by Burrell in relation to a redevelopment of eight flats at Cleveden Drive, Glasgow. Burrell’s architects certified an amount for payment pursuant to an interim certificate. Burrell later disputed this amount.

The Sheriff concluded that there was no dispute that the architect had in fact issued an interim certificate, and this appeared to amount to a notice under section 110(2). Therefore, Clark became entitled to payment within 14 days of the certificate being issued, and it was irrelevant whether Burrell then disagreed with the interim certificate valuation. This was different than the situation where the interim payment was simply the subject of an application by a contractor. If Burrell wished to pay a lesser amount, they had to issue a withholding notice in accordance with s111, and having failed to do so, the sum was undisputedly due.

Key contact

Tel: +44 (0)20 7421 1986
Tel: +44 (0)20 7421 1986