Construction Contracts and Adjudication
Building and construction projects are typically carried out under the terms of either JCT or NEC standard form contracts with “Options”. Where the value of the project is under £500,000 it is regarded as a “Minor” contract. In most cases the contractor will be employed to build an employer design as opposed to a “Design and build” contract.
Under both JCT/NEC contracts a lay client will need considerable input from an expert on “Options” and the interpertations of provisions, payments schedules, compensation events, delays and variations to the project. There are usually several experts involved in the project such as Project Managers, Engineers and Surveyors. We can assist clients by giving clear and simple explanations of the role and power of each person.
Delays due to labour/materials shortges, disputes, price increases and affects of major events around the world such as natural disasters and conflicts will all impact the project. Clients will need to be appraised of their rights and obligations in such situations.
Construction disputes are dealt with by Adjudication, if amicable negotiations have failed. Adjudication is an extremly intensive time critical process. Adjudicators are selected, appointed and paid by the disputing parties who are given minimum time limit to submit their evidence.
We have the experience to assist our clients during the Adjudication process by drafting all documents such as Referrals, Responses, Chronology of Events, Bundles of Documents and Skeleton Argument.
- JCT Standard Form Contracts
- NEC Engineering Contract
- Construction Contract Options
- Adjudication Services
- Compensation Events
- Extensions of Time
- Payment Disputes
- Referral and Response Drafting
Our construction contracts team provides clear, practical guidance to help you understand your rights and obligations under JCT and NEC contracts – whether you are a contractor, employer or specialist subcontractor.
Frequently Asked Questions
What types of construction contracts do you advise on?
We advise on both JCT (Joint Contracts Tribunal) and NEC (New Engineering Contract) standard form contracts. JCT contracts are commonly used in building and civil engineering projects, while NEC contracts are widely used in engineering and infrastructure projects. Both types include various "Options" which significantly affect the rights and obligations of the parties involved.
What happens when there is a delay or dispute on a construction project?
Delays can arise from labour and materials shortages, weather events, global events such as conflicts or natural disasters, and disputes between parties. Under JCT and NEC contracts, the contractor may be entitled to an extension of time and/or additional payment depending on the cause of the delay. We advise clients on their rights in such situations and help them navigate the claims process under the contract.
How does Adjudication work in construction disputes?
Adjudication is a statutory dispute resolution process available under the Housing Grants, Construction and Regeneration Act 1996. Either party to a construction contract can refer a dispute to an Adjudicator at any time. The process is intensive and time-critical, with the Adjudicator required to reach a decision within 28 days of referral. We assist clients through every stage of the Adjudication process, from drafting the Referral Notice to preparing Responses, Chronologies and Bundles of Documents.
Do you draft JCT and NEC contracts?
Yes. We draft and amend JCT, NEC, FIDIC and bespoke construction contracts, schedules of amendments, collateral warranties and parent company guarantees.
Can you help with payment disputes?
Yes. We advise on payment notices, pay-less notices, smash and grab adjudications and recovery of unpaid sums on UK construction projects.
What is the difference between JCT and NEC contracts?
JCT contracts are widely used and allocate risk through traditional, well-established terms. NEC contracts emphasise collaborative management and proactive programming. The right form depends on the project and risk profile.
What are my rights to payment under the Construction Act?
The Construction Act gives most construction contracts a right to interim payments, payment and pay less notices, and suspension for non-payment. We help you use and enforce these rights.
How quickly can an adjudication be resolved?
Adjudication is designed to be fast, with a decision usually reached within 28 days of referral, extendable by agreement. It provides a binding decision that can be enforced while a dispute continues.
What is a pay less notice?
It is a notice a paying party must issue, within set time limits, to pay less than the sum applied for or previously notified. Missing the deadline can make the full sum payable. We advise on timing and content.
Can an adjudicator's decision be challenged?
An adjudicator's decision is binding and enforceable in the interim, but the dispute can later be finally determined by litigation or arbitration. Enforcement is generally quick, so early advice matters.