Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 1 A, a main contractor, engaged B as a sub-contractor for certain works. Among other clauses, the Sub-Contract provides as follows: PAYMENT The Sub-Contractor

Question 1 A, a main contractor, engaged B as a sub-contractor for certain works. Among other clauses, the Sub-Contract provides as follows: "PAYMENT The Sub-Contractor shall submit payment claims to the Main Contractor on the 25th day of every Calendar Month." B submitted a Payment Claim on 27 March 2020 for the sum of $250,000. On 7 April 2020, A served on B a Payment Response. The Response Amount was for the sum of $200,000. As mentioned in the Payment Response, the deduction for $50,000 was in respect of certain defects and works not done. A's Payment Response did not mention any issue in relation to the date of service of the Payment Claim. Subsequently, B decided to dispute A's Payment Response. B served a notice of intention and commenced Adjudication Application in accordance with the SOP Act. Upon being served with a copy of the Adjudication Application, A served his Adjudication Response in compliance with the SOP Act and regulations. Once again, A did not mention any issue in relation to the date of service of the Payment Claim in the Adjudication Response. As directed by the Adjudicator, parties attended a conference before the Adjudicator. In accordance with the SOP Act, the Adjudicator issued his Adjudication Determination deciding that A was liable to pay B the Adjudicated Amount of $250,000. A was dissatisfied with the Adjudication Determination. He filed a Setting Aside Application on the following basis: "The Payment Claim was invalid as it was served late on 27 March 2020. It ought to be served on 25 March 2020. The Payment Claim was served out of time. Hence, the Adjudicator has no jurisdiction to issue the Adjudication Determination. The Adjudication Determination should be set aside." Based on the facts above and law, advise A as follows:

(b) Whether A is likely to succeed in the application to set aside the Adjudication Determination. Give reasons. (15 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Company Law

Authors: Janet Dine, Marios Koutsias

9th Edition

1352010003, 978-1352010008

More Books

Students also viewed these Law questions