Payment and Pay Less Notices in construction contracts – contract clarity and nil value payments

In the recent decision of VVB M&E Group Limited & VVB Engineering UK Limited (together “VVB”) v Optilan (UK) Ltd (“Optilan”), the Technology and Construction Court considered the parties’ contractual payment arrangements in light of VVB’s application for delivery up of materials. Whilst the case, which relates to the ongoing Crossrail project, is very fact specific, it raises issues of general application as regards the operation of Payment and Pay Less Notices in construction contracts.

In this article, James Vernon and Sophie Bryant, discuss the case and the potential impact the decision might have on dispute resolution processes, such as adjudication.

To read the full article, please click on the link below.