Periodic payments - a flexible friend

13 October 2016

On 13 October 2016 the Court of Appeal issued its judgment in the case of Grove Developments Limited v Balfour Beatty Regional Construction Ltd.

For the first time, the Court of Appeal has considered whether irregular periodic payments which do not cover the whole of the works satisfy the statutory payment requirements of the Housing Grants, Construction and Regeneration Act 1996 (as amended) (the Construction Act). The decision, therefore, provides important guidance for employers and contractors, and those advising on or administering the terms of building contracts containing periodic payment provisions.

The Court of Appeal upheld the first instance decision of the Technology and Construction Court (TCC) and dismissed the appeal brought by the contractor, Balfour Beatty Regional Construction Ltd.

Macfarlanes acted for the successful employer, Grove Developments Limited.