Cases - Conor Engineering Ltd v Les Constructions Industrielles de la Mediterranee (CNIM)

Record details

Name

Conor Engineering Ltd v Les Constructions Industrielles de la Mediterranee (CNIM)

Date

[2004]

Citation

EWHC 899 (TCC)

Legislation

• Housing Grants, Construction and Regeneration Act 1996
• Civil Procedure Rules 1998
• Scheme for Construction Contracts (England and Wales) Regulations 1998

Keywords

Construction contracts - adjudication - enforcement of adjudicator's decision - construction operations - site - waste incineration - power generation - whether the primary purpose of the site was waste incineration or power generation - whether the adjudication decision should be enforced - Housing Grants, Construction and Regeneration Act 1996, section 105(2)

Summary

CNIM were appointed to construct a waste incineration and power generation plant. Conor were appointed as their subcontractors for the installation of boilers and pipework.

Disputes arose between the parties, which Conor referred to adjudication. CNIM refused to pay according to the adjudicator's decision and Conor therefore sought to enforce the decision of the adjudicator pursuant to Part 8 of the Civil Procedure Rules 1998.

One of the arguments raised by CNIM was that there was no right to adjudicate as the Scheme was excluded from the provisions of the Housing Grants, Construction and Regeneration Act 1996 by reason of section 105(2) - the primary activity on the site being power generation. On examination of the facts the court rejected this argument, concluding that power generation was a secondary activity, the primary activity being waste incineration. The court reached this conclusion notwithstanding that the claimant's works were primarily related to the power generation element of the works as a whole.

It was further ruled that a notice to withhold payment of the award not served in accordance with paragraph 10 Part II of the Scheme for Construction Contracts (England and Wales) Regulations 1998, not later than 7 days before the final date for payment, was not valid and that time certainly did not begin to run from receipt of the decision, but from the date of the decision itself.