The Supreme Court has clarified the interpretation of standard form contracts, write Andrew Singer KC & Jonathan Ward
- In Providence Building Services v Hexagon Housing Association, the Supreme Court restored the Technology and Construction Court judge’s decision on an issue that involved terms widely used in the construction industry.
- The decision is unlikely to be welcomed by contractors, who may now have fewer measures for dealing with late payment.
The recent decision of the Supreme Court in Providence Building Services Ltd v Hexagon Housing Association Ltd [2026] UKSC 1 has clarified the courts’ approach to interpretation of standard form contracts and the operation of the contractual termination clauses in the Joint Contracts Tribunal (JCT) suite of contracts.
The facts
In February 2019, Hexagon and Providence entered into a contract for the construction of a number of buildings in Purley. The contract incorporated the JCT Design & Build (D&B) Form (2016), as amended by the parties.
On 25 November 2022, the employer’s agent issued Payment Notice 27. Hexagon was required to pay £264,242.55
