Harper James advises ambitious businesses on construction contracts under the laws of England and Wales, from early scope reviews to disputes over payment, delay and defective work. A well-drafted contract does more than record the price: it allocates design responsibility, programme risk, quality standards and the process for changing the works.
The contract should identify the drawings, specifications, schedules, surveys and pricing documents that form the agreement. Include a clear order of precedence so that inconsistencies are resolved without argument. The parties should also state who owns design responsibility, what standard of skill and care applies, and how approvals, testing, defects and completion are assessed.
Current practice places greater focus on building safety duties, information management and auditable records. JCT 2024 updates and continuing use of NEC4 also reflect the need for clearer notification, early warning and change procedures. Businesses entering public sector work should check the applicable procurement regime and framework requirements. A practical guide to current commercial legal resources provides useful further reading.
Risk allocation should match the party best placed to control the risk. Key provisions cover ground conditions, inflation, delay events, extensions of time, liquidated damages, insurance, unforeseen changes and limits on liability. Payment clauses need particular care. They should set out applications, payment notices, pay less notices, retention, final accounts and suspension rights, while complying with the Housing Grants, Construction and Regeneration Act 1996.
Change control is often the difference between a manageable project and a dispute. Require written instructions, priced variations, updated programmes and contemporaneous records. Keep site diaries, instructions, photographs, meeting minutes and evidence of delay. Collateral warranties, third-party rights and parent company guarantees also deserve review where funders, purchasers or tenants rely on the contractor’s performance.
When a problem arises, start with the contract: identify the notice deadline, escalation process and evidence required. Construction adjudication offers a rapid statutory route for many payment and time disputes, while mediation can preserve a working relationship and resolve wider commercial issues. Litigation or arbitration remains available where the contract provides for it or where the dispute requires a final determination.
A practical response is to preserve records, quantify the claim, issue a compliant notice and maintain without-prejudice settlement discussions where appropriate. Legal review at tender stage, before a major variation, or immediately after a payment dispute gives management a clearer view of cost, leverage and timing.