Securing Payment and Adjudicating Under a ‘Hybrid’ Contract

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Rachel Gwilliam

May 2019

The paper is based on a commended entry in the Hudson essay competition 2018

The paper considers the practical difficulties that may be encountered when seeking to adjudicate a dispute under a hybrid contract. The paper examines the concept of hybrid contracts, which comprise both included and excluded operations under the Housing Grants, Construction and Regeneration Act 1996. It explains how difficulties arise as the Act does not allow for adjudication in respect of those elements that are excluded operations such as in process industries. The paper analyses in detail a series of judgments involving Severfield (UK) Ltd and Duro Felguera UK Ltd, which highlighted the consequences facing users of hybrid contracts. The author suggests practical considerations to take into account prior to and during adjudication in respect of hybrid contracts and further argues that it may be time to extend the benefit of the Act to those excluded industries.

Meaning of ‘construction contract’ for ‘construction operations’ – Excluded operations –‘Hybrid’ contracts – Practical difficulties – Considerations prior to and during adjudication – Conclusions

The author: Rachel Gwilliam is a partner at Blake Morgan LLP.

Text: 16 pages

Paper number: 
May 2019, online,1MB

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