“57. From this and other cases, I conclude as follows in relation to breaches of natural justice in adjudication cases: (a) It must first be established that the Adjudicator failed to apply the rules of natural justice; (b) Any breach of the rules must be more than peripheral; they must be material breaches; (c) Breaches of the rules will be material in cases where the adjudicator has failed to bring to the attention of the parties a point or issue which they ought to be given the opportunity to comment upon if it is one which is either decisive or of considerable potential importance to the outcome of the resolution of the dispute and is not peripheral or irrelevant. (d) Whether the issue is decisive or of considerable potential importance or is peripheral or irrelevant obviously involves a question of degree which must be assessed by any judge in a case such as this. (e) It is only if the adjudicator goes off on a frolic of his own, that is wishing to decide a case upon a factual or legal basis which has not been argued or put forward by either side, without giving the parties an opportunity to comment or, where relevant put in further evidence, that the type of breach of the rules of natural justice with which the case of Balfour Beatty Construction Company Ltd -v- The Camden Borough of Lambeth was concerned comes into play. It follows that, if either party has argued a particular point and the other party does not come back on the point, there is no breach of the rules of natural justice in relation thereto.”
“22. It is also well understood that an adjudicator must observe the rules of natural justice. In this context, that means that he should not decide a point on a factual or legal basis that has not been argued or put forward in the submissions made to him: see Balfour Beatty Construction v London Borough of Lambeth[2002] BLR 288 . However, this rule is often easier to state than to apply. 23. If an adjudicator has it in mind to determine a point wholly or partly on the basis of material that has not been put before him by the parties, he must give them an opportunity to make submissions on it. For example, he should not arrive at a rate for particular work using a pricing guide to which no reference had been made during the course of the referral without giving the parties an opportunity to comment on it. 24. By contrast, there is no rule that a judge, arbitrator or adjudicator must decide a case only by accepting the submissions of one party or the other. An adjudicator can reach a decision on a point of importance on the material before him on a basis for which neither party has contended, provided that the parties were aware of the relevant material and that the issues to which it gave rise had been fairly canvassed before the adjudicator. It is not unknown for a party to avoid raising an argument on one aspect of its case if that would involve making an assertion or a concession that could be very damaging to another aspect of its case.”
"85. The objective which underlies the Act and the statutory scheme requires the courts to respect and enforce the adjudicator's decision unless it is plain that the question which he has decided was not the question referred to him or the manner in which he has gone about his task is obviously unfair. It should be only in rare circumstances that the courts will interfere with the decision of an adjudicator. The courts should give no encouragement to the approach adopted by DML in the present case; which…may, indeed, aptly be described as "simply scrabbling around to find some argument, however tenuous, to resist payment. 86. It is only too easy in a complex case for a party who is dissatisfied with the decision of an adjudicator to comb through the adjudicator's reasons and identify points upon which to present a challenge under the labels "excess of jurisdiction" or "breach of natural justice"…The task of the adjudicator is not to act as arbitrator or judge. The time constraints within which he is expected to operate are proof of that. The task of the adjudicator is to find an interim solution which meets the needs of the case. 87. In short, in the overwhelming majority of cases, the proper course for the party who is unsuccessful in an adjudication under the scheme must be to pay the amount that he has been ordered to pay by the adjudicator. If he does not accept the adjudicator's decision as correct (whether on the facts or in law), he can take legal or arbitration proceedings in order to establish the true position. To seek to challenge the adjudicator's decision on the ground that he has exceeded his jurisdiction or breached the rules of natural justice (save in the plainest cases) is likely to lead to a substantial waste of time and expense as, we suspect, the costs incurred in the present case will demonstrate only too clearly."
“60.1 The following events are compensation events: (1) The Project Manager gives an instruction changing the Scope except… (3) The Client does not provide something which it is to provide by the date shown on the Accepted Programme… (14) An event which is a Client’s liability stated in these conditions of contract… (18) A breach of contract by the Client which is not one of the other compensation events in the contract.”
“The Contractor notifies the Project Manager of an event which has happened or which is expected to happen as a compensation event if • the Contractor believes that the event is a compensation event and • the Project Manager has not notified the event to the Contractor If the Contractor does not notify a compensation event within eight weeks of becoming aware that the event has happened, the Prices, the Completion Date or a Key Date are not changed unless the event arises from the Project Manager or the Supervisor giving an instruction or notification, issuing a certificate or changing an earlier decision.”
“During the course of PML proceeding to Provide the Works, a compensation event arose under 60.1 of the Contract when in late 2023 M&TW did not make available to PML the permanent water supply that PML required in order for mechanical testing and commissioning to be carried out and/or M&TW thereafter instructed change to the Scope in connection with the permanent water supply. In consequence of that compensation event, PML was delayed in carrying out the works and PML incurred additional Defined Cost in carrying out the works.”
“Having reviewed the contents of your client’s submissions, we note that no Compensation Event (“CE”) notifications were issued by PML in accordance with Clause 61.3 of the Contract in respect of the incoming water main, nor were Early Warning Notices raised sufficient to constitute formal notification of a CE. As you will be aware, the NEC requires that a Contractor notify a CE within eight weeks of becoming aware of the event, failing which entitlement to both time and cost adjustments is lost. Accordingly, any claims relating to the alleged delays arising from the incoming water main are time-barred under the Contract… While we note your client’s submissions and analysis within the report, our client does not accept that the matters described constitute CEs or justify any extension to the Completion Date under the Contract.”
“Brief description of the Dispute 5. A dispute has arisen under and/or in connection with the Contract (the “Dispute”) and PML hereby gives notice of its intention to refer the Dispute to adjudication. 6. The Dispute is briefly described as follows: a dispute as to PML's entitlements under and/or in connection with the Contract as described in a letter from CSD Legal Limited (“CSD”) to M&TW dated08 October 2025 a copy of which letter is given with and forms part of this Notice of Adjudication… Decision which PML wishes the Adjudicator to make 8. PML wishes the Adjudicator to decide the following: 8.1. That as briefly described in the letter from CSD to M&TW dated08 October 2025 8.1.1. During the course of PML proceeding to Provide the Works, a compensation event arose under 60.1 of the Contract when in late 2023 M&TW did not make available to PML the permanent water supply that PML required in order for mechanical testing and commissioning to be carried out and/or M&TW thereafter instructed change to the Scope in connection with the permanent water supply…”
“Notice paragraph 8.1.4: in consequence of the delay caused to Completion by the compensation event, PML is entitled to a revision of the Completion Date equivalent to a 14-week postponement (or such other period as the Adjudicator may decide) 57. The period of critical delay caused to PML's works by the compensation event was 99 days (14 weeks) as explained and demonstrated by Mr Dunn's report copied at Referral Appendix 10. 58. Clause 63.5 provides for the impact of delay to be assessed in relation to an 'Accepted Programme': “the length of time that, due to the compensation event, planned Completion is later than planned Completion as shown on the Accepted Programme current at the dividing date” 59. PML is not disentitled from being granted an extension of time by the absence of any specific revised 'Accepted Programme', as suggested by the correspondence copied at Referral Appendix 16, because the clause 11.2(1) definition of Accepted Programme (Referral Appendix 04, PDF page 15) provides that the Accepted Programme is the Contract programme if not superseded by any later revision of it. The Contract programme is copied at Referral Appendix 05. 60. However, as a revised programme was in October 2023 created by PML as copied at Referral Appendix 11, Mr Dunn's report Appendix E, PML submits that it makes considerably more sense (in particular having regard to the NIHE v Healthy Buildings judgment copied at Referral Appendix 06, in which the Court held that actual, accurate data should be used for retrospective compensation event assessment, not reconstructions of what may / may not reasonably have been forecast at an earlier juncture) to base the assessment on the programme as it actually was, rather than what it may have been when forecast some 8 months earlier than the occurrence of the compensation event.”
“2.1 PML’s case is (as set out, inter alia, in paragraphs 32, 38 and 39 of the Referral) that M&WT did not provide a permanent water supply until20 February 2024 and, because of this, it was not able to carry out the testing and commissioning of the mechanical elements of its Works (and, as a result, PML claims a 14 week extension of time and associated changes to the Defined Cost and/or Prices). 2.2 In order to succeed, PML must first show (i) a compensation event (within the list at clause 60.1 of the Contract) arose; and (ii) the compensation event was notified. If PML fail to establish either of these points, its claim fails (and it is not necessary to go on to assess the length of alleged delay or quantum claimed). It is only if the compensation event was notified, that it is necessary to consider whether any delay or additional cost flowed from that compensation event and make an assessment of that delay and/or additional cost. 2.3 For the reasons set out in further detail below: 2.3.1 No compensation event arose within the meaning of 60.1(1). The instruction relied upon did not change the Scope and therefore does not fall within clause 60.1(1) of the Contract. There was also no breach by M&TW (or any of its subcontractors) and therefore no compensation event arose under clause 60.1(14) and/or 60.1(18). 2.3.2 Without prejudice to that position, the compensation events under clauses 60.1(14) and (18) were not notified and, as a result, PML’s claim is time barred.”
“1. I am currently reading in and starting to draft parts of my decision. I need some clarification on the following points. 2. The purpose of these clarifications is to enable me to fully understand the respective cases in order to make my decision. Compensation event 60.1 The following events are compensation events. (3) The Client does not provide something which it is to provide by the date shown in the Accepted Programme. 11.2 (1) The Accepted Programme is the programme identified in the Contract Data or is the latest programme accepted by the Project Manager. The latest programme accepted by the Project Manager supersedes previous Accepted Programme. 3. Is the revised programme Contract Programme Rev2 dated14 July 2023 an Accepted Programme? Early Warnings 4. Where is it required anywhere in the contract that this particular event requires an Early Warning Notice in order for it to become a Compensation Event?”
“Issue 1 – Is there an accepted programme? 73.00 The original programme incorporated in the contract at Appendix 03 was an Accepted Programme…Subsequent revised programmes were issued… 74.00 Clause 31 of the contract states… 75.00 I am told that the parties did not adhere to any of these procedures… Issue 2 – Is there a Compensation Event? 76.00 The case from PML is simple. There is a provision in clause 60.1 3) which is simply a provision that provides where there is a failure to provide something that the employer was to provide. 77.00 It is that simple. It requires no more. 78.00 The response to that from M&TW is slightly more complex it is as follows:… Issue 3 – Is there a time bar? 79.00 M&TW’s position is that any claim for all under the Compensation Event provisions in the contract is time-barred. This is because the Compensation Event was not notified. 80.00 It is PML’s position that in any event for the Compensation Event to exist it does not require notification. 81.00 I would examine the effects of Early Warnings under this item.”
“ 101.00 There was an original Accepted Programme. This is found at Appendix 3 to the Contract, (Appendix 5 in the Referral). 102.00 There were a number of subsequent programmes issued by PML . 103.00 The programme that is important to PML ’s case is the revision issued on30 October 2023 Contract Programme Rev3 30.10.23. 104.00 It is that programme that PML says sets the date by which the water supply was required on site… 115.00 It follows from this that I am satisfied Contract Programme Rev3 30.10.23 became an Accepted Programme. Notwithstanding that the procedures were not followed the default position where the Project Manager has not taken steps to reject or amend the presented programme must be that the programme becomes the Accepted Programme. 116.00 I am further satisfied that the date that the watermain was required was30 October 2023 . This is shown on the revised programme. I Find That Contract Programme Rev3 30.10.23 became an Accepted Programme. Further that set the date on which the water main was required as30 October 2023 .”
“117.00 This issue separates the mere existence of a Compensation Event from its impact. 118.00 For a Compensation Event to exist is there a regime of notices of any sort required in order for an occurrence to become a Compensation Event? 119.00 The contract provision to consider here is; Compensation Event 60 60.1 The following events are compensation events. 3) The Client does not provide something which it is to provide by the date Reasons 120.00 M&TW agreed to provide the water main. Who was doing what in connection with the provision of the water main is contained in the Responsibility Matrix in Appendix 1.4 of the Scope. 121.00 The water main was to be provided by South West water and WMM. Both were employed by M&TW. 122.00 They were not in the control of PML. 123.00 These are items to be provided by the Client. They were within Client control. 124.00 They were not provided in accordance with the requirements of dates on Accepted Programmes… 126.00 The Compensation Event exists simply on the basis of the provision in clause 60.1 (3). When M&TW failed to provide the water main by the required date a Compensation Event came into existence. I Find That a Compensation Event did arise when M&TW failed to provide the water main on the date on the Accepted Programme.”