Macob Civil Engineering Ltd v Morrison Construction Ltd
Citation: [1999] EWHC 254 (TCC)
Background Facts​
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Macob was engaged as a subcontractor to carry out groundworks at a retail development site in Carmarthen, South Wales.
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Macob submitted an interim payment application (Valuation No. 6).
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Morrison issued a late notice to withhold payment, which was argued to be out of time.
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Macob referred the dispute to adjudication under the Housing Grants, Construction and Regeneration Act 1996 ("the Act").
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The adjudicator decided that Morrison should pay Macob £302,366.34 plus interest and costs.
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Morrison refused to pay, arguing the decision was invalid due to procedural errors and breaches of natural justice.
​Judgment
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Court’s decision:
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The adjudicator’s decision was valid and enforceable.
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Morrison's arguments about procedural breaches did not invalidate the decision at this enforcement stage.
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​
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Key findings:
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The decision of an adjudicator under the Act is binding and must be complied with immediately, even if there are allegations of error.
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Challenges to the validity of an adjudicator’s decision should be resolved later in final litigation or arbitration — not at the enforcement stage.
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Morrison’s attempt to stay enforcement proceedings under the Arbitration Act 1996 was rejected.
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​
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Outcome:
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Declaration granted that the adjudicator’s decision was binding until finally determined otherwise.
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Morrison required to pay the sums awarded.
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General Principles Developed
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Binding nature of adjudicator’s decision:
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Adjudicators’ decisions are temporarily binding, enforceable straightaway, and must be complied with until the dispute is finally resolved by litigation, arbitration, or settlement.
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Errors of fact, law, or procedural fairness (unless extreme) do not prevent enforcement.
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​
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“Pay now, argue later” policy:
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The case firmly established this principle in UK adjudication law, supporting the rapid cash flow aims of the 1996 Act.
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Natural justice challenges:
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Alleged breaches of natural justice do not generally stop immediate enforcement; they can be addressed in subsequent proceedings.
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No right to refuse compliance pending arbitration:
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Parties cannot use arbitration clauses to delay payment or avoid compliance with adjudicator's decisions.
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Enforcement remedies:
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The court can grant declarations or money judgments to enforce adjudicator’s decisions. Injunctions for payment are generally inappropriate.
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