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ARTICLE · 03 FEBRUARY 2026

Be Careful When Terminating Due To Late Interim Payments!

Shepherd and Wedderburn
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The case of Providence Building Services Limited v Hexagon Housing Association Limited concerns the interpretation of a termination clause in a JCT Design and Build Contract.

United KingdomReal Estate and Construction
Leigh Herd
Leigh Herd
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The case of Providence Building Services Limited v Hexagon Housing Association Limited concerns the interpretation of a termination clause in a JCT Design and Build Contract. The decision from the Supreme Court reverses the decision made by the Court of Appeal around termination in the context of repeated late payments, and provides clarity on the interpretation of the specific clause as well as the court's approach to the interpretation of construction contracts generally.

The background to the appeal

Hexagon Housing Association Limited (the “Employer”) and Providence Building Services Limited (the “Contractor”) entered into a contract to build social housing.

A dispute arose which centred on the Employer's late payment of two interim payments. The Contractor served a ‘notice of specified default' in relation to the first late interim payment. The Employer subsequently paid the outstanding sum within the 28 day notice period under Clause 8.9.3, meaning the

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