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ARTICLE · 21 DECEMBER 2021

Beginning A Project Without A Clear Contract In Place

Gowling WLG
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Failing to agree clear terms in advance of starting work is a clear risk, as most recently shown in the Technology and Construction Court (TCC) judgment in Changing Climates Ltd v Warmaway Ltd [2021].

United KingdomReal Estate and Construction
Ashley Pigott
Ashley Pigott
Cathy Moore
Cathy Moore
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Failing to agree clear terms in advance of starting work is a clear risk, as most recently shown in the Technology and Construction Court (TCC) judgment in Changing Climates Ltd v Warmaway Ltd [2021]. These proceedings related to an application for summary judgment to enforce an adjudication decision. The jurisdiction of the adjudicator had been challenged by Warmaway, with the contention being that there was no contract at all in place between Warmaway and Changing Climates (CC).

If Warmaway was correct, there could be no "construction contract" between the parties as defined in the Housing Grants, Construction and Regeneration Act 1996 as amended (the Construction Act), meaning that there was no right to adjudication and the adjudicator would not have jurisdiction in respect of the dispute.

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