As the effect of COVID-19 continues, so does the refusal of many entities in the construction industry to make fair payment to the supply chain. This position is getting worse as the effect from the virus develops.

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On the other side of the fence spurious claims from contractors and subcontractors should also be avoided and do not help the situation, but generally it is clients and contractors causing problems in certain sections of the industry by failing to pay, this problem then continues through each tier of the supply chain as a direct result. It is therefore not surprising that construction insolvencies will increase significantly during 2020.

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Inevitably, disputes due to non payment within the industry are on the rise until such a time when larger organisations improve the balance between looking after their shareholders and looking after their supply chain.

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We have recently experienced a high success rate from the adjudication process representing both sides of the fence for various clients - for the Referring party (generally chasing money which is contractually due) and for the Responding party. Acting as the Party Representative on one adjudication our client received money owed in just over 28 days from the day we were appointed.

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Adjudicator Nominating Boards are also simplifying the process in order to make adjudication more suitable for less complicated disputes. The RICS has recently introduced a scheme for disputes less than £20,000 with low fees for the loosing party.

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You do not need a lawyer to act on your behalf to be successful, you just need people who understand the process and understand law which we at Palm Commercial Services Ltd do. 

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Please contact us for no obligation chat about your payment issues.

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