A&V v J&B | mysite

A & V Building Solution Ltd v J & B Hopkins Ltd

Citation: [2024] EWHC 1510 (TCC)

Background Facts

The project was for plumbing works for the Moulsecoomb Campus student accommodation for the University of Brighton.
Main contractor: Bouygues UK; JBH was a subcontractor; A&V was engaged under a sub-subcontract dated 18 December 2019 for Towers 1–3 and Podiums 1 and 2.
The contract sum was initially £368,000 and later increased to £447,800 due to variations.
A&V began works in early 2020; site temporarily closed due to COVID-19 in March 2020.
There were delays and resequencing of works, especially in the Podiums.
By March 2021, A&V left site with works incomplete. JBH claimed this was due to poor performance; A&V claimed delays were caused by JBH and external factors.
Dispute arose over the final account, valuation of completed works, variations, and responsibility for delays and costs.

Key findings:
- A&V did not complete the works and left site before finishing, breaching the subcontract.
- Although there were delays and resequencing issues (partly due to BYUK and COVID-19), A&V was still contractually required to complete on time or seek proper extensions, which it did not do adequately.
- A&V’s claims for additional losses (over £645,000) were largely rejected.
- JBH’s contra charges and costs (e.g., for completing the works and rectifying defects) were allowed.

Outcome:
- The court substantially sided with JBH’s valuation.
- A&V was found liable for the cost of incomplete and defective works, as well as the costs JBH incurred to complete.
- A&V’s claim for further payment was dismissed, and it was ordered to pay JBH a net sum after set-off.

Strict compliance with contract obligations:
Even when external delays occur (e.g., resequencing or COVID), a subcontractor must formally notify and seek extensions in accordance with contract terms.

Importance of evidence and contemporaneous records:
The court relied heavily on documentation (e.g., emails, minutes, records of handovers) over retrospective assertions.

Responsibility for site logistics and progress:
Subcontractors remain responsible for coordinating and completing works diligently, even in challenging conditions. Failure to proceed "regularly and diligently" may justify employer termination or recovery of completion costs.

Objective valuation of final accounts:
Final account valuations are determined objectively based on measured work, certified variations, and rectification costs, rather than subjective or inflated claims.

No recovery without substantiation:
Claims for variations or additional losses require clear substantiation and compliance with contract procedures (e.g., clause requiring detailed supporting information as condition precedent to payment).