What is a ‘smash and grab’ adjudication and is it legal?

“Smash and grab” adjudication is a slang term in the construction industry for a specific tactic used in payment disputes. Despite the aggressive nickname, it’s perfectly legal when done within the rules. In essence, a smash-and-grab occurs when a contractor or subcontractor takes advantage of the other party’s failure to serve proper payment notices, and as a result, claims full payment of the sum applied for. Regardless of the true value of the work at that time. 

To break it down: under the Construction Act’s payment regime, when you submit a payment application, the payer must respond with a timely Payment Notice (indicating what they assess is due) and, if they want to pay less than that, a Pay Less Notice by the deadline. If they miss those deadlines or don’t issue a valid notice, the law says the amount you applied for becomes the “notified sum” that must be paid in full. A smash and grab adjudication is you essentially saying: “You didn’t dispute my application in time, so now you owe me the entire amount, no questions asked.” 

Is it a loophole? 

One might think it feels like a windfall for contractors, hence the dramatic term “smash and grab”, as if you’re grabbing cash due to a technicality. However, UK courts have affirmed this outcome is exactly what the law intended if notices aren’t served. It’s a procedural right to enforce payment when the payer drops the ball on the notice requirements. So long as you follow the correct process, a smash-and-grab claim is legitimate. Parties cannot contract out of smash and grab adjudication as this is a statutory right. 

A classic example: you submit an application for £100,000. The contractor neither issues a payment notice nor a pay less notice by the required dates. Come the final date for payment, they only pay you £60,000, believing that’s the “real” value. You can initiate adjudication purely on the basis that £40,000 is outstanding because no notices were given, therefore £100,000 is the due sum in law. The adjudicator in a smash-and-grab usually doesn’t delve into the true value; it’s a straight interpretation of the procedural failure. You typically win outright if the notices were absent or late. 

Is it legal? 

Absolutely. A Court of Appeal confirmed that if a contractor wins a smash-and-grab (because no valid notice was issued), the payer must pay the full amount but can then launch a “true value” adjudication afterward to argue the real value of the work. Crucially, the payer must pay the smash-and-grab award first before arguing about value. This ensures “pay now, argue later” still holds, and prevents a losing party from stalling payment by simply starting a second adjudication. 

Key things to know about smash and grab adjudications 

• They are usually quick and relatively straightforward. The dispute isn’t over the work’s value, but over whether the notices were served correctly. Adjudicators can often decide these cases very fast because it’s mainly a paperwork exercise: check the contractual timeline against the dates of notices. 

• It’s a one-issue adjudication. You cannot include a valuation dispute in the same reference. A smash-and-grab is only about enforcing the notified sum due to lack of notice. 

• It’s potent, but not always the end of the story. The paying party can counter with a true value adjudication later. If the adjudicator agrees the actual value was lower than what you claimed, you might have to repay the difference. Be aware of this “repayment risk”. 

• Keep your applications honest and well-documented. Smash-and-grab is not about trickery; it’s about holding the other side to the rules. Often the threat or win of a smash-and-grab prompts both parties to settle commercially. 

• The law is settled. Payers must pay the notified sum if they missed notices, but can then seek the true value. They must pay first before they can argue about it. 

Summary 

“Smash and grab” adjudication is a lawful strategy that leverages the strict payment notice regime. It’s essentially using the law’s zero tolerance on late notices to secure quick payment. For subcontractors facing an opponent who neglects the paperwork, it’s legitimate leverage and not a loophole, but a feature of the system designed to encourage timely notices. Just proceed with eyes open. It’s a powerful short-term win, and entirely legal, but the final account may still need to be resolved afterward either by agreement or another adjudication.