Standard Forms And Interpretation Norms

The UK Supreme Court has ruled on the interpretation of clauses in a standard form JCT Design and Build Contract. For the construction industry, the case is useful for illuminating the meaning of certain ambiguous JCT Design and Build clauses. However, more generally, the case is interesting for the Supreme Court's comments on the interpretation of industry-wide standard form contracts.

Missed payments

Under a contract for Providence to carry out building works for Hexagon, Hexagon had to make interim payments. Hexagon missed a payment, but paid in full within a cure period. Hexagon then missed another payment, and Providence purported to terminate the contract in exercise of its rights under a clause allowing it to terminate for certain repeated defaults by Hexagon.