Providence Building Services Ltd v Hexagon Housing Association Ltd [2024] EWCA Civ 962 (15 August 2024)

Providence Building Services Ltd v Hexagon Housing Association Ltd [2024] EWCA Civ 962 (15 August 2024)

Clause 8.9.4 of the JCT 2016 Design and Build Contract allows the contractor to terminate for repeated specified defaults even if the right to give the further notice under clause 8.9.3 never accrued, as the words 'does not give' and 'for any reason' are broad and do not require an accrued right to give the notice. The structure and language of clauses 8.4.3 and 8.9.4 support this interpretation, and the commercial consequences are acceptable.

Citation
[2024] EWCA Civ 962
Parties
Claimant / Appellant: Providence Building Services Limited; Defendant / Respondent: Hexagon Housing Association Limited
Jurisdiction
England and Wales
Judgment Date
15 August 2024
Procedural Posture
Appeal From High Court (tcc) / Court of Appeal Judgment
Outcome
Appeal allowed
Legal Topics
Termination of Contract, Interpretation of Standard Form Contracts, JCT Design and Build Contract, Employer Default, Contractual Remedies
Construction Law Contract Law Termination of Contract Interpretation of Standard Form Contracts JCT Design and Build Contract Employer Default Contractual Remedies

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 5 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Providence Building Services Limited

Claimant / Appellant

Hexagon Housing Association Limited

Defendant / Respondent

Procedural Posture

Appeal From High Court (tcc) / Court of Appeal Judgment

Legal Issues

  1. 1 Whether a contractor can terminate under clause 8.9.4 of the JCT 2016 Design and Build Contract where a right to give the further notice under clause 8.9.3 has never previously accrued

Ratio Decidendi

Clause 8.9.4 of the JCT 2016 Design and Build Contract allows the contractor to terminate for repeated specified defaults even if the right to give the further notice under clause 8.9.3 never accrued, as the words 'does not give' and 'for any reason' are broad and do not require an accrued right to give the notice. The structure and language of clauses 8.4.3 and 8.9.4 support this interpretation, and the commercial consequences are acceptable.

Court Disposition

Appeal allowed

Orders

  • Providence's appeal is allowed.