Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Subbies win pay battle

SUBCONTRACTORS WILL be protected from damaging delay tactics by main contractors in contract disputes following a landmark decision released by the Court of Appeal this week.

The ruling outlaws the use of Clause 18 (2) of the FCEC Blue Form which requires disputes with subcontractors to be dealt with jointly with main contract disputes. The clause allows claims to drag on for years.

It came in the case of Redland Aggregates v Shepherd Hill Engineering. Redland was claiming £500,000 it said it had been owed since 1995. A panel of judges said contractors could only defer the subcontractor's dispute for a reasonable period, indicating this could be as short as three months.

The judges added that if the main contractor did not pursue the arbitration as part of main contract negotiations within this reasonable period, the subcontractor would be free to proceed with an arbitration between itself and the contractor. Shepherd Hill considering an appeal.

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Please note comments made online may also be published in the print edition of New Civil Engineer. Links may be included in your comments but HTML is not permitted.