If you are looking for an answer to the question ‘What is a smash and grab adjudication?’, chances are you work in the construction industry and are caught up in a dispute over payment.
A smash and grab adjudication is a fast-track legal mechanism that allows a contractor or subcontractor to recover unpaid sums based not on the value of the work carried out, but on a paying party’s failure to follow the correct payment notice procedures. At Altion Law, we advise contractors, employers, and subcontractors across a wide range of construction disputes, including commencing and defending smash and grab adjudications.
For a confidential free discussion, call us today on 01908 538293, alternatively email us at Hello@altion-law.co.uk or complete our Free Enquiry Form and we will call you back.
What is ‘smash and grab’ adjudication?
Under a qualifying construction contract, the parties are required to issue various notices relating to payments. The deadlines for serving these notices are strict contractual and statutory requirements. For example, if the paying party misses the deadline for a pay less notice, they are legally obliged to pay the full sum stated in the payment application, regardless of whether they genuinely believe the amount is excessive or that some of the work was defective.
The informal term ‘smash and grab adjudication’ reflects the nature of the claim. A smash and grab adjudication is not concerned with the actual value of the work done. It is focused entirely on a procedural failure. The adjudicator’s role is simply to determine whether the required notices were served correctly and on time. If they were not, the decision goes in the claimant’s favour, and payment must be made.
An adjudication of this type typically reaches a decision within 28 days of the referral, though this can be extended to 42 days with the claimant’s consent, or longer if both parties agree. For a contractor facing significant cash flow pressure, this speed is invaluable.
At Altion Law, we regularly assist clients in preparing and pursuing adjudication referrals and can act quickly to protect your position.
The ‘pay now, argue later’ principle and true value adjudications
A crucial aspect of smash and grab adjudication is the ‘pay now, argue later’ principle. This means that where a smash and grab adjudication is successful, the paying party must pay the awarded sum before they are entitled to bring a separate ‘true value’ adjudication to establish what was actually owed for the work carried out. Even if an employer genuinely believes the contractor has overclaimed, their remedy is to comply with the smash and grab award first and then pursue a true value adjudication to recover any overpayment.
This sequencing matters enormously in practice. Paying parties who ignore or delay compliance with a smash and grab award because they disagree with it face enforcement proceedings, and the courts have consistently supported enforcement with very limited grounds for challenge. If you are on the receiving end of an enforcement claim, our team can review the adjudicator’s decision and advise on any available defences.
Which contracts are covered by smash and grab adjudications?
Smash and grab adjudications apply to contracts within the scope of the Housing Grants, Construction and Regeneration Act 1996. This covers the majority of commercial construction contracts in England and Wales, but there are exceptions. Residential occupier contracts, where one party is a homeowner intending to occupy the property, fall outside the Act’s provisions. It is also important that the payment application itself was made correctly under the terms of the contract, as errors in the application process can affect the strength of a claim.
We can advise at an early stage on whether a contract falls within the statutory regime and whether the payment notices that have been exchanged meet the required standard.
How we can help
Timing is everything in a smash and grab adjudication. Once a final date for payment has passed and no valid pay less notice has been served, the clock is running. Delays in taking action can complicate matters, particularly where subsequent payment cycles begin or where the paying party attempts to issue retrospective notices.
At Altion Law, our construction dispute solicitors have extensive experience advising clients on all aspects of the payment regime under the Construction Act, from reviewing contractual payment terms before disputes arise, to running adjudication proceedings, and enforcing awards through the Technology and Construction Court. We combine legal expertise with commercial experience, and our advice is always tailored to our client’s business reality. We offer fixed fee early-stage consultations, so if you are facing a payment dispute or want to understand your position before one develops, contact our team today.
For a confidential free discussion, call us today on 01908 538293, alternatively email us at Hello@altion-law.co.uk or complete our Free Enquiry Form and we will call you back.
