Maymac Environmental Services Ltd v Faraday Building Services Ltd
Monday, 16 October 2000
Key terms: Jurisdiction – Construction Contract – Estoppel
Maymac undertook mechanical and electrical installation works in connection with the roof works package at the Hilton Hotel in Olympia, London. Maymac was successful in an adjudication. However, Faraday resisted enforcement on the basis that the Adjudicator did not have jurisdiction as no construction contract had come into existence. Maymac argued there was a construction contract on the basis of a letter passing between the parties and further, Faraday had agreed to take part in the adjudication and was bound by the result.
The Judge agreed that there was a construction contract as, on the facts, there was a common understanding between the parties that there was a concluded contract in writing on agreed terms and that the Act applied to it. The Judge also agreed that Faraday could not resile from its agreement to submit to the adjudication and its admission that there was a contract to which the Act and the scheme applied. Therefore Faraday was estopped by representation and convention from arguing the contrary.