Shepherd Construction Ltd v Pinsent Masons LLP is a salutary reminder to all that when relationships break down, the resulting mess can be very expensive to sort out. Shepherd and Masons had worked together for over 20 years before this dispute.

Shepherd sustained losses whilst working on the Trinity Walk shopping centre when The Employer, Trinity Walk Wakefield Ltd went into administration in 2009. Shepherd elected to rely on its non-standard pay-when-paid clause in the various sub-contracts entered on the project to try to avoid making payments to it sub-contractors.

The pay-when-paid provision had been drafted some time in 1998 by Masons on the DOM/1 and DOM/2 forms of sub-contract, to address the effects of The Housing Grants Construction and Regeneration Act 1996. The relevant amendment drafted by Masons provided that… Continue Reading