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Construction cases: The effect of a final certificate under the "Red Book" contract (Matthew Hall Ortech Limited v Tarmac Roadstone Limited, 1997)

United Kingdom
26/07/1998
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Effect of Final Certificate under the "Red Book" Contract

Matthew Hall Ortech Limited -v- Tarmac Roadstone Limited (1997) looked at the conclusiveness of a Final Certificate issued in accordance with Clause 38.5 of the Institution of Chemical Engineer's Model Form of Condition of Contract commonly known as the "Red Book". It was held by HH Judge Thornton QC, on appeal from an Arbitrator's Award, that the issue of a Final Certificate was conclusive evidence that all work required to be performed by the contract conformed with the requirements of the contract and all defects had been made good such that the making good requirements of the contract had been complied with. Therefore the Final Certificate was a conclusive evidential bar to claims both in contract and tort regarding inadequate design and workmanship. This decision is consistent with the Court of Appeal's decision in Crown Estate Commissioners -v- John Mowlem & Co (1994) concerning the effect of the issue of a Final Certificate under JCT 80.

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