Savoye And Savoye Ltd v Spicers Ltd
2014
TECHNOLOGY AND CONSTRUCTION COURT
UK
CORAM
- MR JUSTICE AKENHEAD
Areas of Law
- Construction Law
2014
TECHNOLOGY AND CONSTRUCTION COURT
UK
CORAM
AI Generated Summary
The case involved Savoye enforcing an adjudicator's decision favoring them against Spicers Ltd regarding the installation of a conveyor system. The dispute centered on whether this installation was a 'construction operation' under Section 105 of the HGCRA. Following adjudication and further legal proceedings, including site visits and trials, the court ultimately ruled that the installation did indeed count as a construction operation, allowing the adjudicator's decision to be enforced.
JUDGMENT
Mr Justice Akenhead:
The Claimants, Savoye (a French company) and Savoye Ltd (a related British company) (together “Savoye”) seek to enforce an adjudicator’s decision in its favour against Spicers Ltd (“Spicers”). The only issue is whether the underlying contract between the parties was a construction contract involving “construction operations”. This issue revolves around the application of the proper meaning of the term "construction operations" in Section 105 of the Housing Grants, Construction and Regeneration Act 1996 (“HGCRA”) in the context of the facts and the contract between the parties.
Factual Background
Spicers is, in a substantial way, in the business of distributing office supplies and equipment. It has a number of warehouses, including one at Smethwick, West Midlands. At Smethwick, its business is mainly storing a very large number and range of products which have come from wholesalers, manufacturers and importers for distribution to other wholesalers, albeit that some of the products are provided direct by Spicers to clients.
By a written contract dated 3 January 2013 (“the Agreement”), Spicers engaged Savoye to design, supply, supervise and commission a new conveyor system at its existing factory site in Dartmouth Road, Smethwick, West Midlands. Spicers had invited Savoye amongst others to tender on 11 July 2012 and, by its Proposal (12-P-049 Rev 7), Savoye submitted its tender which was accepted. Clause 2.9 contained an express agreement "that the Equipment and Services to be provided by [Savoye] hereunder are exhaustively defined in the Agreement and Proposal, the provision of any other item necessary for the performance of the Agreement being under Spicers’ responsibility". Clause 2.1 required Savoye to "supply the Equipment and the Services in accordance with the Agreement". The Contract Price was identified in Clause 5.1 (a) as £2,370,801. It is, rightly, common ground that Savoye was required to install the Equipment, Clause 6.5 identifying that when "the Equipment has been delivered and installed in accordance with the Agreement, and has passed all required inspection and testing, it will be accepted by Spicers”. There were provisions requiring Savoye to rectify defects in or damage to the Equipment and Services. Clause 21 provided for dispute resolution with senior management first to discuss the matter to resolve disputes, Clause 21.2 then providing as follows:
“In the event that no settlement is reached under cl