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Construction & Engineering

Door closing on costs recovery in adjudication

This time last year there was much focus on the amusingly titled case of Lulu Construction v Mulalley & Co Ltd [2016] EWHC 1852, an enforcement decision where Lulu, which won an adjudication, persuaded an adjudicator to also award payment of its legal costs by Mullaley, and the TCC enforced that part of the award. Many commentators criticised that decision because section 108A of the Housing Grants, Construction and Regeneration Act 1996 (as amended)(‘the Construction Act’) does not permit the recovery of legal costs in adjudication without written agreement. Two recent decisions have reinforced the view that recovery of costs in adjudication is not appropriate unless explicitly agreed.

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