‘Construction dispute means a difference or dispute of whatever nature between the employer and the contractor arising under, out of, or in connection with this contact, and includes, but is not limited to, (a) any claim, demand or assertion as to contractual entitlement under this contract made by either party against the other party, which is neither agreed nor disputed by such other party, (b) any dispute as to any decision, opinion, instruction, direction, certificate or valuation of the employer, the employer’s agent or the certifying engineer (whether during the progress of the works or after their completion and whether before or after the determination, abandonment or breach of this contract).’ ‘Equivalent project relief means a benefit or relief under the concession agreement to which the employer is or becomes entitled from time to time, pursuant to or under the concession agreement (or would have become so entitled but for a default or omission of the employer under the concession agreement, save to the extent that the same was caused or contributed to by the contractor) to the extent that it is equivalent to a benefit or relief claimed by the contractor under this contract in respect of the same circumstances.’ ‘Project relevant event means any of the following: (a) Any act of prevention or breach of contract by the Secretary of State in respect of its obligations under the concession agreement (b) Any department’s change (c) Any other event under the concession agreement whereby the employer is or becomes entitled to compensation, reimbursement, indemnification or other payment by the Secretary of State under the concession agreement.’
‘7.1.1 The contractor shall, subject to clauses 7.1.1(a) and 7.1.1(b) be entitled to such proportion of any equivalent project relief as may in all the circumstances be fair and reasonable, but... 7.1.3 Notwithstanding any other provision of this contract, in the case of a project relevant event, the contractor shall only be entitled to payment or recovery by any other means (including means of set-off or abatement) of any price adjustment to the extent that the following conditions precedent have, subject to clause 7.1.4, been satisfied. (a) An agreement has been made between the Secretary of State and the employer, or a determination has otherwise been made under or in connection with the concession agreement, establishing that the employer is entitled to equivalent project relief in respect of such price adjustment for such project relevant event, and (b) the employer has received the price adjustment funds or has certified that it has funds available to it for the purposes of payment of such price adjustment, provided always that if the employer has received or has available to it part only of the funds necessary for the payment of such price adjustment, the employer shall be obliged to make payment only to the extent of those funds available from time to time.’... 7.2 ‘The employer shall use all reasonable endeavours to pursue under the concession agreement such rights and remedies as may relate to the works or the contractor’s other risks and obligations hereunder...’ 7.4 ‘Subject to clause 7.2 (Enforcement of Rights under Concession Agreement), 7.4.1 pending the determination, agreement or resolution of any equivalent project relief under the concession agreement, the contractor shall take no steps to enforce any right, benefit, or relief under this contract to the extent that such right, benefit, or relief relates to the same circumstances as those to which the project-relevant event to which that equivalent project relief relates.’ 7.4.2 ‘Following the determination, agreement or resolution of the equivalent project relief under the concession agreement, the contractor shall be conclusively deemed to have waived any rights, benefit, or relief under or in connection with this contract in respect of the project relevant event that gave rise to the entitlement to equivalent project relief in excess of those arising from such determination, agreement, or resolution. Accordingly, the contractor shall not take steps under the disputes resolution procedure, or otherwise, with the objective that the project relevant event should be resolved under this contract in any different manner from that under the concession agreement, and the contractor hereby waives any right to do so.’ 7.5 ‘Save as provided in this clause (7), the employer shall have no liability to the contractor in respect of any project relevant events’. 7.6 ‘To the extent of any inconsistency between the provisions of clause (7) and any other provisions of this contract, the provisions of clause (7) (Contractor’s Rights) shall take priority.’
“Where the employer gives a notice to the contractor in accordance with paragraph 11.2., 11.3.1: the employer shall if he has not already done so, promptly refer the project relevant event for resolution or determination (as the case may be) under the concession agreement in accordance with the provisions of schedule 15 thereof. 11.3.2: unless the Secretary of State shall have served notice in accordance with paragraph 7.1.2 the contractor shall serve notice in accordance with paragraph 8.2. 11.3.3: The contractor shall not take any steps to enforce any of its rights under this contract which may prejudice or be inconsistent with the operation of paragraph 8. 11.4: to the extent of any inconsistency between the provisions of paragraph 11 of this appendix 6 and any other provisions of this appendix 6 or of this contract the provisions of paragraph 11 of this appendix 6 shall prevail.”
“Notice of intention to refer a construction dispute to adjudication (tigers tails). We hereby give notice of an intention to refer the following construction dispute to adjudication namely CAMBBA’s entitlement to an interim payment in respect of department’s change 11 dated14 July 2002 as more particularly set out below … 5. CAMBBA have submitted ‘sufficient particulars to enable the employer to determine the amount due’ in respect of department’s change 11. In particular CAMBBA refer to their application for payment/claim submission dated12 May 2004 . 6. CAMBBA have disputed that MEL had properly certified their entitlement to payment for department’s change 11. 7. Accordingly CAMBBA now seek the resolution of the construction dispute by adjudication pursuant to clause 53 of the contract. 8. CAMBBA therefore seek a decision from the adjudicator for a declaration that, 1, MEL pay CAMBBA the price adjustment they are entitled to resulting from department’s change 11 in the further sum of£9,795,814 plus VAT or such other sum as the adjudicator shall think fit and, 2, interest on any such sum pursuant to the adjudicator’s inherent power or as damages and/or 3, any payment certificates which have included an assessment/payment of costs for department’s change 11 be opened up and revised to reflect the adjudicator’s decision as to the value of the department’s change 11 that should have been certified earlier and/or 4, such other relief as the adjudicator thinks fit.”
“We refer to your letter of 11 October to our clients Midland Expressway Limited (MEL) enclosing a notice of intention to refer a construction dispute (tiger tails) to adjudication. As referred to in clause 7.1.1 of appendix 6 of the contract a copy of your client’s notice has been sent to the department’s agent in accordance with the provisions of paragraph 7.1 of schedule 8 of the second supplemental agreement to the concession agreement. We wait to hear whether the Secretary of State wishes to become a party to your client’s reference. Should he wish to do so then as you are aware the Secretary of State will give notice to our respective clients within the next seven days. In the event that the Secretary of State does not wish to become a party and as your clients are claiming payment in respect of a department’s change, then in accordance with the provisions of clause 7.2 our clients will use their reasonable endeavours and seek to enforce your clients’ rights under the concession agreement by immediately initiating the dispute resolution procedure under the concession agreement.”
“I have sought advice from the Highways Agency to determine if the Secretary of State under clause 7.1.2 of the concession agreement wishes to be party to this matter. I have now been advised that they do not. However at this stage I would reiterate again that in our opinion under the concession agreement the site is defined as ‘the land, spaces, waterway, roads and any surface required for the project facilities an indication of the general area of which is provisionally identified in the drawings’ and as such any work required outside of the provisional indication does not of itself necessitate a department change. If under your contract with CAMBBA there is a defined site boundary, giving rise to different contractual implications, then this is a matter for yourselves to determine. I await the outcome of the adjudication in due course.”
“I regret that I am obliged to take this action but as you are aware the contractor (CAMBBA) claim that they are entitled to more money than has currently been certified and has recently instigated an adjudication under the provisions of the construction contract. Pursuant to clause 7.2 of the construction contract MEL are obliged to use all reasonable endeavours to pursue under the concession agreement such rights and remedies as may relate to the works for the contractor’s benefit. I would be pleased to hear from you as to when you are available to meet in accordance with the provisions of paragraph 1.1 of the procedure in order to see whether we are able to resolve the dispute.”
“5. Pursuant to clause 39.7 of the contract CAMBBA are ‘entitled to have included in any interim payment certified by the employer pursuant to clause 38 such amount in respect of any department’s change as the employer may consider due’ Clause 39.6 sets out MEL’s obligation to value the price adjustment as defined in the contract required in respect of the department’s change. 6. MEL wrote to CAMBBA on10 June 2004 … confirming that they were ‘obliged to formally value any claimed department change. We now propose to do so.’ To date MEL have not valued the department’s change. Instead, MEL seem to be operating a ‘pay when paid’ approach and have paid CAMBBA£1.5 million for department’s change 11 being the sum they themselves have been paid by their employer, the Secretary of State. 7. No detailed valuation seems to have been carried out by the department’s agent and only an arbitrary and unallocated sum of£1.5 million has been paid in two tranches,£800,000 prior to CAMBBA’s detailed claim of12 May 2004 and£700,000 on16 September 2005 (exclusive of VAT). 10. CAMBBA know of no issue that prevents MEL valuing their claim. They are aware that MEL and the DA are debating whether under the concession agreement the scope of work of the southern tie in required by department change 11 was required of MEL in any event. MEL have the benefit of Jacobs Babtie’s report showing what they believed should have been constructed but for department change 11. They therefore have all the information they need to value the southern tie in works caused by department change 11. The fact that they cannot persuade their employer of what the southern tie in would have required but for department change 11 is a matter for them and their employer. On an interim basis CAMBBA’s entitlement to payment is clear. Clause 39.7 refers. Whether or not MEL pursue their entitlement under the concession agreement is a matter for them. In the event that it is established that MEL are not entitled to payment from their employer for any monies they may have paid to CAMBBA on an interim basis for the department change, then such overpayment will have to be repaid pursuant to the final certificate as envisaged by clause 38.5.2 of the contract or corrected in a later interim certificate pursuant to clause 38.4.3. The present position of MEL waiting for their employer to value and pay for the work is not what the contract requires of MEL.”
“1. A declaration that on a true interpretation of the design and construction contract executed as a deed between the claimant and the 1st, 2nd, 3rd and 4th defendants on27 September 2000 those defendants are not entitled to proceed as claimants in the adjudication begun by the notice of intention to refer a construction dispute to adjudication dated11 October 2005 . 2. A declaration that the 5th defendant has no jurisdiction as adjudicator in the above adjudication. 3. An order restraining the 1st, 2nd, 3rd and 4th defendants whether by themselves or by their directors, officers, employees or agents or otherwise howsoever forthwith from proceeding as claimants in the above adjudication. 4. An order restraining the 1st, 2nd, 3rd and 4th defendants from beginning any further adjudication as claimants in respect of the same subject matter as that of the above adjudication. 5. An order restraining the 5th defendant forthwith from proceeding as adjudicator in the above adjudication.”
“A construction dispute means a difference or dispute of whatever nature between the employer and the contractor arising out of or in connection with this contract …”