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ARTICLE · 01 OCTOBER 2026

Legal Developments In Construction Law September 2026

Mayer Brown
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The High Court has delivered three landmark rulings clarifying payment mechanisms under the Housing Grants, Construction and Regeneration Act 1996, the conclusive effect of JCT Final Statements...

United KingdomReal Estate and Construction
Brad Fearn
Brad Fearn
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1. High Court Holds that an "Event-based" Final Date for Payment Clause is Not Construction Act Compliant

In Deerns UK Limited v VDC LHR11 Limited [2026] EWHC 1509 (TCC), the High Court considered whether a consultancy agreement's final date for payment mechanism complied with s110(1) of the Housing Grants, Construction and Regeneration Act 1996 (the "HGCRA").

Deerns UK Limited ("Deerns") was engaged under a consultancy agreement dated 23 April 2025 (the "Contract") to provide engineering consultancy services for a development at Chandos Park Estate, London NW10. Clause 7.2 of the Contract fixed the due date for each instalment by reference to specified dates in Schedule 1, and provided that the final date for payment was 30 days after the due date; save that if Deerns' invoice was issued late, the final date for payment would be postponed by the same number of days. VDC LHR11 Limited ("VDC") served pay less notices in respect of payment applications 7 and 8, which were timely under

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