QMAC Construction Ltd v Northern Ireland Housing Executive

In respect of both the Ardoyne contract and the Springhill contract applications were made for interim payment in respect of each of the contracts.� An application was also made for interest under the terms of the Contract at the rate of 0.5% of the delayed amount for each complete week of delay.

[3]������� The defendant denied any liability to pay the sums under either Contract.� It claimed that there were �true value� adjudications pending which were in the process of being finalised for service which would determine that the defendant was owed money by the plaintiff.� The adjudications were described as �smash and grab� and that the adjudicator had made an obvious error in his calculation of interest and/or the award of interest constituted a penalty.�

[4]������� Significantly in neither case did the defendant dispute jurisdiction or argue that there was a breach of the rules of natural justice.� More importantly the defendant did not serve a Pay Less Notice in respect of either contract.

[5]������� Before me the defendant raised similar arguments but concentrated its fire on alleging that the interest award was manifestly incorrect and arguing that if the judgment sums were paid over by the defendant to the plaintiff then it would be difficult for the plaintiff to pay the defendant should the defendant ultimately succeed in the forthcoming adjudications.�

[6]������� Expert reports have been received from Mr Neill, chartered accountant of HNH Partners Limited on behalf of the defendant and from Mr McAllister, chartered accountant of ASM, on behalf of the plaintiff.� Both experts are well qualified to give expert testimony and both have obligations to the court.� It is pointed out that Mr McAllister�s firm is the auditor of the plaintiff.� However, an auditor provides an independent financial opinion and I do not see why this should preclude Mr McAllister from giving an independent expert opinion in the present case.