What Is Smash and Grab Adjudication?
Smash and grab adjudication is one of the most important payment issues for Quantity Surveyors to understand.
Despite the dramatic name, it is not really about “grabbing” money. It is about enforcing the payment rules under a construction contract. In simple terms, a smash and grab adjudication happens when one party claims payment because the other party failed to issue the correct payment notice or pay less notice on time.
The adjudication is not usually about whether the works are genuinely worth the amount claimed. Instead, it focuses on whether the correct payment procedure was followed.
A Simple Example
Imagine a subcontractor submits an application for payment for £100,000.
The main contractor believes the work is only worth £70,000. However, the contractor misses the deadline for issuing a payment notice or pay less notice.
The subcontractor may then argue that the £100,000 has become the notified sum and must be paid.
This is why smash and grab adjudication is often described as a “pay now, argue later” situation.
What Is the Notified Sum?
The notified sum is the amount that becomes due under the contract’s payment notice procedure.
Under the Construction Act, the paying party must pay the notified sum by the final date for payment unless a valid pay less notice has been issued.
A valid pay less notice should clearly state the amount the payer considers to be due and the basis on which that amount has been calculated. If this is not done properly, the payer may lose the immediate right to withhold payment.
For Quantity Surveyors, this is a key point. It is not enough to disagree with an application. The disagreement needs to be set out properly, in the correct notice, by the correct deadline.
Why This Matters to Quantity Surveyors
For Quantity Surveyors, smash and grab adjudication is not just a legal issue. It is a commercial management issue.
Most smash and grab disputes happen because of poor administration rather than complex valuation disagreements.
Common causes include:
- missing the payment notice deadline;
- missing the pay less notice deadline;
- issuing a notice to the wrong person;
- using the wrong method of service;
- failing to clearly state the amount due;
- failing to explain the basis of the calculation;
- relying on an informal email instead of a proper notice.
This is why QSs need to understand both the valuation and the contract procedure.
A correct valuation can still lead to a poor commercial outcome if the notice process is not followed.
How to Reduce the Risk
The best way to avoid a smash and grab adjudication is to manage payment notices properly.
Every project should have a clear payment tracker. This should include:
- the application date;
- the due date;
- the payment notice deadline;
- the pay less notice deadline;
- the final date for payment.
These dates should be reviewed every payment cycle and should not be left to memory.
It is also important that notices are clear and formal. A payment notice or pay less notice should not simply say, “we disagree with your application.” It should state the amount considered due and explain how that figure has been calculated.
Evidence of service should also be kept. It is not just about preparing the notice. You may also need to prove that it was served correctly and on time.
Final Thoughts
Smash and grab adjudication is a reminder that construction payment is not just about measurement and valuation. It is also about procedure.
For contractors and employers, a missed notice can mean paying a sum that is disputed. For subcontractors and consultants, the payment rules can provide a fast route to recover cash when the payer has failed to administer the contract correctly.
Quantity Surveyors, the lesson is simple:
Know the contract. Diarise the dates. Issue clear notices. Keep evidence of service.
Smash and grab adjudication may sound aggressive, but in reality, it is often the result of one party understanding the payment rules better than the other.
