ISG challenged the adjudicator’s award relating to Project Barberry, a warehouse project at an industrial park in Avonmouth Docks.
The payment dispute over the £3.4m cladding subcontract arose when FK issued a £1.69m application for payment which was greeted with a payless notice and then not paid.
An adjudicator ruled in FK’s favour in February directing ISG to pay the application. The payment was not released which led FK to seek enforcement of the ruling in the High Court.
ISG challenged the award claiming that it is owed around £66,620 by FK from a second separate project, known as Project Triathlon, another warehouse project involving both firms that was built at the London Gateway project in Essex.
ISG claimed it had valid set off relating to Project Barberry and Triathlon, which the court should take into account.
In its evidence for the application, ISG implied that it had “growing concerns” over FK’s financial position and, in particular, that FK would be unable to repay any over-payment made to it by ISG.
But justice Joanna Smith rejected ISG’s arguments and reported that FK’s evidence confirmed a healthy order book and a financially robust company.