Providence Building Services Limited v Hexagon Housing Association Limited

Providence Building Services Limited v Hexagon Housing Association Limited

Clause 8.9.4 of the JCT Standard Form allows the Contractor to terminate for repeated specified defaults even if the right to terminate under Clause 8.9.3 never accrued; the words 'for any reason' and the congruence with Clause 8.4.3 indicate no requirement for an accrued right to serve notice under Clause 8.9.3.

Parties
Claimant / Appellant: Providence Building Services Limited; Defendant / Respondent: Hexagon Housing Association Limited
Jurisdiction
England and Wales
Judgment Date
15 August 2024
Procedural Posture
Civil Appeal / Court of Appeal Judgment
Outcome
Appeal allowed
Legal Topics
Termination of Contract, Interpretation of Standard Form Contracts, Late Payment, Remedies for Breach
Contract Law Construction Law Termination of Contract Interpretation of Standard Form Contracts Late Payment Remedies for Breach

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Parties

Providence Building Services Limited

Claimant / Appellant

Hexagon Housing Association Limited

Defendant / Respondent

Procedural Posture

Civil Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether a right to terminate under Clause 8.9.3 must first have accrued before Providence could terminate under Clause 8.9.4 of the JCT Standard Form of Design and Build Contract

Ratio Decidendi

Clause 8.9.4 of the JCT Standard Form allows the Contractor to terminate for repeated specified defaults even if the right to terminate under Clause 8.9.3 never accrued; the words 'for any reason' and the congruence with Clause 8.4.3 indicate no requirement for an accrued right to serve notice under Clause 8.9.3.

Court Disposition

Appeal allowed

Orders

  • Providence's appeal is allowed
  • Interpretation of Clause 8.9.4 as permitting termination for repeated specified defaults without prior accrued right under Clause 8.9.3