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International In-house Counsel Journal logoInternational In-house Counsel Journal logo

Cash is King in the UK Construction Industry

Abstract

The coronation of the King has long since passed and all celebrations are complete but in these straightened times cash is still the undisputed king in the UK construction industry. Cash flow is paramount and is the life blood of the industry. This was shown in the fall out of Carillion’s insolvency when it was the sub-contractors that had signed up to three months payment terms that went to the wall. Some might say that most small contractors operate without capital, on a “hand to mouth” basis and for that reason are always on the edge of insolvency. They might of course be forced into this position because the building employer or main contractor has not paid them. The principal mechanism for enforcement of payment terms by contractors in the UK is of course Adjudication. If they fall into insolvency, they will face a barrier to enforcement of the Adjudicator’s decision in an application for summary judgment in the Technology and Construction Court (TCC). This is because an Adjudicator’s award of payment to be made is only an interim decision and can be overturned upon a final determination of the dispute by the court. For this reason, the TCC will not enforce the Adjudicator’s decision for payment to be made to an insolvent contractor or sub-contractor unless measures are put in place to “ring fence” the money, so that it can be paid back to the employer or main contractor if they win the case in a final determination of the dispute by the court. What though is the position where the contractor has entered into a Company Voluntary Arrangement (CVA) to try and trade its way out of trouble?

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Author

Portrait image of Anthony Philpott
Anthony Philpott
Barrister, Barrister (Direct Public Access and Authorised Litigator) UK - AP Legal Direct , UK

Anthony Philpott is a Construction Lawyer and is practising Barrister, sole practitioner and litigator under the name of AP Legal Direct. He conducts Adjudications, Arbitrations and litigation with success for Building Employers, Developers, Contractors and Sub-Contractors.. He has the MSc in Construction Law and Arbitration from King’s College London and he is a member of the Chartered Institute of Arbitrators. He spent more than ten years as Legal Counsel with Bovis Lend Lease a construction and project management multi-national where he advised on and negotiated every type of construction contract and represented the company on major projects and disputes including multi-million pound construction litigation. He is dual qualified as a Solicitor (non-practising) and Barrister (practising and authorised to conduct litigation). He has the following experience in Construction contracts and disputes: • In depth knowledge of every form of standard building contract • Advised on tender documents and terms and conditions and drafted amendments over many years • Advised on all associated contract documents of bonds, guarantees, collateral warranties, novation agreements and consultants’ appointments • Negotiated with leading city law firms on every type of building contract • Particular knowledge and experience of negotiation and drafting of Private Finance Initiative Hospital projects and Building Schools for the Future Facilities (BSF) Management contracts • Comprehensive knowledge of all Private Finance Initiative contractual documents • Drafted, negotiated and advised upon Facilities Management BSF contracts and Medical Equipment contracts and sub-contracts with suppliers on three major hospital projects at Havering and Roehampton in London and Leeds Oncology and Building Schools for the Future. • Comprehensive knowledge and experience of ADR in construction Adjudications, Arbitrations and Mediations • Conducted adjudications against leading London city construction law firms in submitting Notice of Intention to Adjudicate and Referral Notices, conducting arguments over jurisdiction of the adjudicator and natural justice legal and contractual arguments in general • Drafting of pleadings, court and Alternative Disputes Resolution documents • Conducted litigation in the Court of Appeal, High Court (including in the enforcement of Adjudicator’s decision in the Technology and Construction Contracts Court) • Comprehensive knowledge and experience of Housing Grants Construction and Regeneration Act 1996 as amended and case law on enforcement of Adjudicators’ decisions in the Technology and Construction Contracts. .* He has conducted and succeeded in Arbitrations for building contractors

Company

Barrister (Direct Public Access and Authorised Litigator) UK - AP Legal Direct   logo

Barrister (Direct Public Access and Authorised Litigator) UK - AP Legal Direct

AP Legal Direct. I am a Construction Lawyer. I can be contacted at info@anthonyphilpott.com and on 07540857709. I conduct litigation, arbitrations and adjudications for building contractors and property developers with a high degree of success fand particularly for Contractors or Sub-Contractors who are having problems in getting paid by their clients, I can: • Endeavour to recover the amounts owed as quickly as possible to improve the cash flow of your business, • Maximise their chances of recovering the sums owed to them by representing you in construction Adjudication, Arbitration, Mediation and Litigation, • Enforce in court an Adjudicator’s decision made in their favour in a cost effective manner I am a highly experienced Direct Access Barrister with the right to conduct litigation and former in-house Legal Counsel providing businesses and individuals with a cost effective “one stop shop" solutions. I can operate without the need for you to go through a solicitor in dealing with your court proceedings. Clients choose me for my transparent costs, in depth legal knowledge and tenacious proactive approach. I can combine the legal services of an experienced Solicitor and a skilled court advocate with my experience as a former in house construction lawyer . I can go on the court record as your lawyer and provide assiduous representation in the Courts and Tribunals. I have an in depth knowledge of all types of construction contracts. I can swiftly deal with their legal problem and apply my varied experience to find the quickest, easiest and most cost effective outcome. This will give them the best chance of a rapid and cost effective solution. My professional experience spans 40 years of advice and representation in a diverse range of legal areas and I set out to achieve the best results clients are looking for, while delivering them on time and within projected budgets of legal costs. AP LEGAL DIRECT Anthony Philpott Barrister Authorised Litigator Regulated by the Bar Standards Board Tel: 075 4085 7709 E mail: info@anthonyphilpott.com 19 Brooksby Road Tilehurst Reading Berkshire RG31 6NA Web site: publicdirectaccessbarrister.co.uk

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