Victory in Major Government Construction Adjudication
295 calendar days’ additional time and 280 days’ preliminary-cost entitlement in principle.
The background
Optimum Resolution acted for a family run main contractor in a complex construction dispute concerning the fit-out and external works of a significant government facility.
The project was carried out under an NEC4 Option A contract which was originally valued at over £12 million.
As the works progressed, there were extensive changes to the scope of the works, with over 200 Compensation Events, which caused substantial programme disruption and commercial impact. The client agreed value of the project had been pushed north of £19 Million
Our client faced an entrenched refusal by the government’s project management team to grant proper time extensions or recognise entitlement to associated preliminary costs, despite clear evidence of programme impact due to the significant changed scope of the project.
Following what was considered unlawful termination of the contract and an asserted final account position which sought to close out entitlement, our client instructed Optimum Resolution to lead adjudication proceedings under the NEC contract.
The Adjudication
The adjudication ran over a 3.5-month period and involved detailed and highly technical submissions from both parties.
The government engaged a leading City law firm, a specialist London barrister and a senior delay expert from a global consultancy to defend the adjudication.
This represented a substantial commitment of external legal and expert resources. In contrast, Optimum Resolution prepared and managed the client's case through a focused and commercially efficient approach, supported by specialist planning expertise where required.
Despite the considerable resources deployed by the government, the adjudicator found overwhelmingly in our client's favour.
- The adjudication involved complex disputes around:
- Proper assessment of time entitlement for Compensation Events
- Application of NEC clause 53.3: final assessment as conclusive evidence
- Alleged concurrent delay
- Associated entitlement to recover preliminary costs
- Wider NEC programme and Compensation Event procedural compliance
The Outcome
The adjudicator found decisively in favour of our client:
- Awarding an extension of time of 295 calendar days, moving the project Completion Date accordingly
- Awarding 280 days’ entitlement to recover preliminary costs in principle
- Rejecting the government’s argument that concurrent culpable delay barred time recovery
- Ordering the government to pay 80% of the adjudicator’s fees, confirming our client’s position as the successful party in the adjudication
Reflection
This case demonstrates that:
- With expert preparation and strategic argument, contractors can succeed against even the most heavily resourced government bodies and their defences
- NEC contractual rights around time entitlement and Compensation Event handling remain enforceable when properly advanced
At Optimum Resolution, we pride ourselves on delivering clear, practical and successful outcomes in even the most challenging construction disputes, including those against major government bodies.
