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ARTICLE · 21 JANUARY 2026

Late Payments: Not Such Thin Ice After All

Fenwick Elliott LLP
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In August 2024, the Court of Appeal handed down its judgment in which it held that a contractor was entitled to terminate its employment based on just two late payments, each of which was rectified within 14 days.

United KingdomReal Estate and Construction
Paul Smylie
Paul Smylie
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In August 2024, the Court of Appeal handed down its judgment in which it held that a contractor was entitled to terminate its employment based on just two late payments, each of which was rectified within 14 days. In our blog at the time, we explained how the decision was a stark warning to employers, with the Court of Appeal itself noting how the decision left them on thin ice in respect of late payments. However, the Supreme Court has now overturned the Court of Appeal's decision and restored the leeway afforded to employers under the JCT contract.

Background

Hexagon Housing Association Limited ("Hexagon") engaged Providence Building Services Limited ("Providence") to construct a number of buildings under a contract (the "Contract") incorporating the 2016 JCT Design and Build Contract as amended by the parties.

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This article is taken from Fenwick Elliott's 2021/2022 Annual Review. To read further articles go to Fenwick Elliott Annual Review 2021/2022

This article is based on recent summaries from the Fenwick Elliott Dispatch, a monthly newsletter which highlights some of the most important legal developments during the last month, relating to the building, engineering and energy sectors. You can find further details here: https://www.fenwickelliott.com/knowledge-hub/dispatch-articles/

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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