Cases - Nordot Engineering Services Ltd v Siemens plc

Record details

Name
Nordot Engineering Services Ltd v Siemens plc
Date
14 April 2000
Citation
Unreported
Legislation
Keywords
Adjudication - payment - schedule of rates - application for summary judgment - jurisdiction - adjudicator - confer jurisdiction - agreement
Summary

Nordot were a subcontractor to Siemens in respect of the provision of mechanical works, pressure piping, assorted equipment and access platforms to machinery at Cottam Power Station. The work was associated with the provision of a gas turbine generating plant.

Disputes arose in relation to payment and in particular in relation to the applicability of a schedule of rates.

Nordot referred the disputes to adjudication and the adjudicator decided that Nordot should be paid additional sums in excess of £100,000 plus VAT.

These proceedings arose out of Nordot's application for summary judgment in relation to that decision.

Siemens argued before the adjudicator that he did not have jurisdiction to hear the matter because the subcontract was not one which fell within the scope of the Act, Nordot's responsibility being the erection and installation of plant and machinery, the primary activity on the site being power generation.

However, they went on to say to the adjudicator:

'We will, however, abide by your decision in this matter and will comply with whatever decision you deem appropriate. Should you require it we can furnish you with a detailed list of all activities that Nordot undertook at CDC Cottam which supports our above statements.'

The adjudicator concluded that the erection of access platforms formed part of the building structure and that he had jurisdiction to consider disputes arising in relation to this work.

Following this decision, Siemens responded to the referral, again raising the issue of the adjudicator's jurisdiction in the response.

The question facing the judge in the application for summary judgment was whether Siemens, by their actions, had conferred jurisdiction on the adjudicator to determine whether or not the contract with Nordot was within or outside the scope of the Act.

Siemens argued before the judge that the parties cannot contract into the Act, just as they cannot contract out of it, but this submission was dismissed by the judge who found that parties can, by agreement, confer jurisdiction on an adjudicator.

The judge concluded that Siemen's letter outlined above and sent to the adjudicator clearly conferred on the adjudicator ad hoc jurisdiction to determine the matter and that Siemens must therefore comply with his decision.