Architects win dispute after developer ends contract

firm of architects have won their dispute with a developer over the payment of an invoice.

The issue arose after the developer accepted the architects' fee proposal in relation to a housing project.

After a few months, the developer emailed the architects, indicating that it intended to use another firm to prepare the planning application and develop the layout of the project, but would still work with them in relation to house styles. The architects replied that their understanding had been that they would be designing the layout and that they had submitted a fee proposal for a full service.

They stopped work on the project and submitted an invoice for work up to that point.

The developer failed to pay so the architects obtained an adjudication award.

The developer took further legal action and the court ruled in its favour. It said the developer’s decision to use another firm was a repudiation of the contract, which the architects had accepted.

The contract had therefore been discharged. The Court of Appeal has overturned that decision.

It held that the architects had not accepted the developer’s decision as a breach of contract; they had treated it as a termination of the contract without the appropriate notice.

For more details contact Mark Oakley - 020 8290 7337 moakley@judge-priestley.co.uk