Poor Contract Administration Can Create Enormous Financial Exposure. A recent Technology and Construction Court decision highlights the potentially serious consequences when contract administration, payment certification and professional responsibilities become the subject of a legal dispute. In Coventry & Warwickshire Development Partnership LLP v Avison Young (UK) Ltd a dispute arose concerning the administration of a major construction project. The employer alleged that the NEC Project Manager had negligently certified payments to a contractor, contributing to substantial overpayments before the contractor entered insolvency.
An adjudicator awarded approximately £8.7 million plus interest against the project management company. In October 2026, the High Court enforced the adjudicator’s decision, rejecting challenges to the adjudication process. Importantly, the Court did not independently determine the underlying allegations of professional negligence.
Nevertheless, the case provides an important lesson for anyone responsible for administering commercial contracts. Contract management is not simply about maintaining relationships, organising meetings and monitoring supplier performance. It also involves understanding legally enforceable duties, exercising contractual authority appropriately and maintaining adequate evidence to justify commercial decisions.
Buyers and contract managers should be able to identify the obligations imposed by the contract, understand the consequences of approving payments and recognise when contractual decisions may expose their organisation to financial claims.
Sales managers should also understand the responsibilities their organisations accept when providing contract administration, consultancy and professional services.
A failure to understand contractual duties, authority and liability can turn routine contract administration into a multimillion-pound dispute.
Understanding contractual obligations, liability, remedies and dispute resolution is essential to effective contract management.
Contract law is not just for solicitors. Buyers, sales managers and contract managers make commercial decisions every day that can create legally binding obligations and substantial financial liabilities.
DPSS’s Contract Law and Drafting course for Contract Managers, Buyers and Sales Managers 30 Nov – 1 Dec 2026 will help buyers, sales managers and contract managers understand the legal principles governing contractual obligations, breach, remedies and termination.
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Source: Burness Paull, 23 October 2026
