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    Contract Award

    Supreme Court backs late paying client: JCT D&B 2016/2024 lessons for project teams

    January 16, 2026|

    Reviewed by Tom Sullivan

    Supreme Court backs late paying client: JCT D&B 2016/2024 lessons for project teams

    First reported on The Construction Index

    30 Second Briefing

    The Supreme Court has ruled that Providence Building Services was not entitled to terminate its £7.2m JCT Design & Build 2016 contract with Hexagon Housing Association over two late payments on a six-block social housing scheme in Purley. Interpreting clause 8.9, five law lords held unanimously that a contractor must first accrue a termination right under clause 8.9.3, meaning a second late payment only justifies termination if the first was more than 28 days overdue. The decision confirms that identical wording in the 2024 JCT D&B edition also offers stronger protection to employers against “trigger happy” termination over minor payment delays.

    Technical Brief

    • Contract was a £7.2m JCT Design & Build 2016 scheme for six social housing blocks in Purley.
    • Hexagon had amended the standard JCT payment period from 14 days to 28 days before dispute.
    • There were 21 late payments alleged overall, but the key conflict centred on two specific late payments.
    • First late payment in December 2022 was made 14 days after its due date, within the 28‑day window.
    • Second late payment occurred in May 2023; Providence issued a termination notice the following day.
    • Technology & Construction Court initially found in November 2023 that no termination right had accrued under the amended contract.
    • Court of Appeal later found for Providence in August 2024 before the matter went to the Supreme Court.

    Our Take

    Because this dispute turns on fewer than 20 words in clause 8.4 and the interaction with clauses 8.9.3–8.9.4 of the JCT Design and Build 2016, the Supreme Court’s reading is likely to be treated as a de facto drafting guide for housing and local authority employers across the United Kingdom using amended JCT forms.

    With 21 late payments in issue and only a 14‑day overrun on the key December 2022 instalment, the judgment signals that English courts may tolerate a pattern of modest delay where the contract wording (as in this JCT 2016 variant) does not make strict punctuality an express condition of continued performance.

    Among the 80 Policy stories in our database, this is one of the few centred on the Technology & Construction Court and Supreme Court rather than regulators, so it is likely to become a leading citation for UK practitioners when allocating termination risk and payment periods in future JCT-based contract awards.

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    Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.

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