Supreme Court Clarifies Termination Rights Under JCT Contracts
Amrit Kaur Dhanoa and Arran Dowling-Hussey discuss in their latest article one of the most significant construction law decisions of 2026 so far, the Supreme Court judgment in Providence Building Services Ltd v Hexagon Housing Association Ltd.
The case clarifies when a contractor can terminate under the JCT Design and Build Contract 2016 for late payment or other specified defaults.
The Supreme Court confirmed that a contractor cannot terminate under clause 8.9.4 unless a right to terminate under clause 8.9.3 had first arisen but not been exercised. In practice, this means successive instances of late payment alone will not automatically give rise to a termination right.
This overturns the Court of Appeal’s earlier decision and provides important certainty for employers, contractors and subcontractors operating under JCT contracts.
To read the full article, please click the link provided here.
