The validity of payment applications is a hotly debated topic in the realm of construction payment disputes.

In the TCC’s recent decision of Jaevee Homes Limited v Mr Steve Fincham (trading as Fincham Demolition) [2025] EWHC 942, the TCC considered the validity of a series of invoices and the extent to which an exchange of WhatsApp messages formed a contract between the parties.

What happened?

Jaevee Homes Limited (the “Claimant”), engaged Steve Fincham (trading as Fincham Demolition) (the “Defendant”) for demolition works (the “Works”) at a site in Norwich.

A dispute arose concerning work carried out and monies applied for by the Defendant in four invoices (together, the “Invoices”). Of those Invoices, £80,000 had been paid which, on the Defendant’s case, left £125,650.38 payable (the “Outstanding Sum”).

The procedural history underpinning this case is explained in more detail in our bulletin (link below). This case concerned Part 8 proceedings that were initiated by the Claimant to challenge an adjudicator’s decision (the “Decision”) and a Part 7 enforcement order (the “Enforcement Order”) which both ordered payment in the Defendant’s favour.

What did Mr Roger ter Haar KC decide?

The Judge, Mr Roger ter Haar KC, granted two declarations in the Defendant’s favour.

The first declaration concerned when, how and on what terms had the parties entered a contract (the “Contract”). The Judge found that the Contract was formed by emails and WhatsApp messages exchanged between April 2023 and 17 May 2023. Such messages established the Defendant’s entitlement to issue monthly payment applications which became payable 28 to 30 days following receipt of an invoice. The Judge also found that failure to agree on the duration, start date and payment terms for the Works were not essential terms which precluded a concluded contract.

The second declaration concerned the validity of the Invoices as payment applications. As the Contract made no provision for how monthly instalments were to be calculated, the Judge concluded that the Scheme for Construction Contracts (England and Wales) Regulations 1998 (as amended) applied. The Invoices were ultimately found to sufficiently set out the basis on which the sums claimed were calculated despite such Invoices only listing the Works completed and there being no mathematical breakdown to the overall sum claimed or valuation of each item. After further analysis, however, only three of the four Invoices were valid because one of the invoices was the second invoice submitted in that given month.

What did we learn from this case?

This case demonstrates that:

• Informal correspondence such as WhatsApp messages can constitute a concluded contract.
• Failure to agree on matters such as the duration, start date and payment terms applicable to works do not preclude formation of a contract. It is, however, recommended that such terms be agreed to the extent possible to promote certainty and so that parties properly understand their contractual obligations.
• In the context of a simple lump sum contract with no breakdown of the contract price, payment applications that only list the works completed can constitute a valid applications for payment despite no mathematical breakdown being provided.

Why is this case important?

This case illustrates the importance of properly recording and negotiating contractual terms to avoid costly disputes later down the line.

Do you need help drafting, negotiating and interpreting your construction contracts? Our team has hands-on experience and are happy to help. Please reach out to us for clear and actionable advice.

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This article contains information of general interest about current legal issues, but does not provide legal advice. It is prepared for the general information of our clients and other interested parties. This article should not be relied upon in any specific situation without appropriate legal advice. If you require legal advice on any of the issues raised in this article, please contact one of our specialist construction lawyers.

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