When a final account certificate is far from final

Tony bingham 2017 bw web

A dispute about the final account on a Scottish school got murkier and murkier – not to mention ever costlier

The Scottish judge Lord Woolman gave a pithy statement: “Construction contracts contain three important regimes. One – interim certificates – cash flow during the course of the contract. The second – the final certificate – facilitates the early and conclusive resolution of all outstanding claims. The third – adjudication – avoids the lengthy construction disputes of yore.” He added: “Each regime has its own cordon sanitaire. Sometimes however, the regimes mesh. Rarely they clash. That has happened in this case. It throws a question into sharp relief: how final is a final certificate?”

“Yore” – what a lovely word. My favourite stories are about gallant knights and fair maidens in the days of yore. As for “cordon sanitaire” – it’s what we did in lockdown.

So, what’s what in this recent case from Scotland’s appeal court, the Inner House? D McLaughlin & Sons Ltd was the contractor for an extension to Hurlford Primary School, Kilmarnock, at a price slightly over £2m. East Ayrshire Council is the employer using a JCT contract.

Read more …

This content is available to REGISTERED users

You are not currently logged in.

LOGIN or REGISTER to access this story

Gated access promo

LOGIN or REGISTER for free access on selected stories and sign up for email alerts.

Take out a print and online or online only subscription and you will get immediate access to:

  • Breaking industry news as it happens
  • Expert analysis and comment from industry leaders
  • Unlimited access to all stories, including premium content
  • Full access to all our online archive

Get access to premium content subscribe today