A cautionary tale from a luxury build
The client, keen to tailor a standard JCT contract to suit their needs, made several changes, including deleting Article 7 and removing adjudication references in the contract particulars. The aim was clear: to take adjudication off the table as a dispute resolution option. But one clause, tucked away in the conditions, was left unchanged. And that small oversight meant the contractor still had the right to adjudicate.
A similar situation played out in MJ Harding Building Contractors v Paice [2014].
The ruling from that case is clear: to properly remove the right to adjudication, every reference to it across the contract must be deleted—not just in one section. The particulars and the conditions need to be treated as separate moving parts, each requiring their own attention.
Residential, or something more?
Then there’s the added twist of the “residential occupier exemption” under Section 106 of the Housing Grants, Construction and Regeneration Act. It’s a layer of legal protection designed for homeowners – but it doesn’t apply automatically.
In this case, the property had substantial leisure facilities separate from the main home. That raised a fundamental question: do the works “principally relate” to a dwelling? Answering that meant analysing both the physical layout and how the project costs were distributed. It’s rarely straightforward – and often subjective.
Where we come in
This case serves as a reminder of why expert contract interpretation matters from day one. At Ridge, we take a proactive approach to contract formation and administration. That means spotting gaps before they become problems – and aligning dispute resolution pathways with our client’s intentions. We believe contracts should protect you, not surprise you.
In a landscape where one overlooked clause can open the door to costly legal proceedings, a detailed, joined-up view of your contract isn’t just helpful – it’s essential.
Jonathan Solly is an Associate Partner in our Cost Management team. You can contact Jonathan on [email protected].
