Cases - Palmers Ltd v ABB Power Construction Ltd
Record details
- Name
- Palmers Ltd v ABB Power Construction Ltd
- Date
- [1999]; [1999]; (1999)
- Citation
- BLR 426; 68 Con LR 52; CILL 1543; Times, October 6, 1999
- Legislation
- Keywords
- Construction contracts - adjudication - scaffolding - construction operations - preparatory works for provision of boilers - mechanical and engineering project - whether the erection of scaffolding was a construction operation - whether the claimant had a right to refer the dispute to adjudication - Housing Grants, Construction and Regeneration Act 1996, section 105(1) and (2)
- Summary
-
Palmers were a scaffolding subcontractor to ABB who in turn were appointed to provide heat recovery steam generating boilers and associated pipework at the Esso Fawley Cogeneration Project at Fawley.
Disputes arose between Palmers and ABB, which Palmers sought to refer to adjudication. Concurrently with the referral to adjudication, Palmers issued a notice of intention to suspend performance of their works allegedly pursuant to the provisions of the Housing Grants, Construction and Regeneration Act 1996.
ABB retorted that Palmers' contract did not come within the scope of the Act and therefore Palmers had no statutory right to adjudication. Palmers sought to resolve this issue and referred the matter to court for determination on the point of law.
It was accepted by both parties that ABB's own works were outside the scope of the Act pursuant to the exceptions in section 105(2)(c). ABB therefore argued that Palmers' works were also outside the scope of the Act as being operations preparatory to excluded works. The judge disagreed with this interpretation and found that the reference to scaffolding in section 105(1)(e) of the Act referred to the operations in section 105(1) of the Act irrespective of whether the exclusions in section 105(2) applied.