What a breach of a construction contract means
A breach occurs when a party fails to perform a contractual obligation, performs it late, performs it defectively or acts in a way that shows it no longer intends to be bound. In construction, obligations may be found in the written contract (for example JCT or NEC forms), bespoke amendments, specifications, drawings, programmes, scope of works and implied terms such as reasonable skill and care.
Common scenarios include:
- Failure to pay interim or final sums, or invalid pay less notices
- Delay and disruption, including failure to grant extensions of time
- Defective workmanship, materials or design errors
- Refusal to carry out instructed variations or unauthorised changes
- Wrongful suspension of works or unlawful termination
- Failure to provide access, information, approvals or coordination
- Retention disputes, liquidated damages and performance security claims
Construction contracts often contain strict notice and time bar provisions. Missing a notice deadline can prejudice claims for time or money. Early specialist advice can make the difference between recovering your losses and being left out of pocket.
How we can help
We combine technical construction knowledge with strategic litigation expertise to resolve breach of contract matters efficiently and cost‑effectively. Our team guides you from first assessment through to settlement or judgment in the Technology and Construction Court.
- Urgent triage and preservation of your position, including compliant notices
- Forensic contract review under JCT, NEC and bespoke forms
- Claims for delay, disruption, prolongation and loss of productivity
- Defects and design liability, including expert engagement
- Adjudication (commenced or defended) with speedy 28‑day timetables
- Mediation and without prejudice negotiations
- Arbitration or court proceedings, including TCC enforcement of adjudicator’s decisions
- Interim remedies such as applications resisting calls on bonds or seeking mandatory relief
- Final account resolution and settlement agreements that close out risk
We act proportionately, focusing on the evidence and the commercial objective: keeping works moving where possible, or ending the dispute on terms that protect your cash flow and reputation.
Why choose us
Stephensons is a national law firm with a strong reputation for dispute resolution. We are regulated by the Solicitors Regulation Authority and hold the Law Society’s Lexcel legal practice quality mark, reflecting our commitment to client care and robust risk management.
Our litigation teams are recognised for sector experience, responsiveness and practical advice. We offer clear costs information from the outset, strategic case plans and regular updates so you always know the next step and the likely outcome.
Construction disputes rarely occur in isolation. Where necessary, we draw on colleagues in areas such as professional negligence, property, regulatory and, if allegations of fraud or health and safety breaches arise, our award‑winning criminal defence specialists. This multi‑disciplinary approach ensures you receive comprehensive support through every phase of a dispute.
Remedies and damages available
The primary remedy for breach is damages aimed at putting you in the position you would have been in had the contract been performed. Depending on the facts, recoverable losses can include the cost of rectification, diminution in value, prolongation and preliminaries, loss of profit, wasted management time and professional fees.
Other remedies may include liquidated damages for delay, declarations, specific performance in rare cases, injunctions to prevent wrongful termination or calls on performance security, and interest under contract or statute, including the Late Payment of Commercial Debts regime for qualifying business‑to‑business transactions.
Adjudication, mediation and court proceedings
Most UK construction contracts are subject to statutory adjudication, delivering a temporarily binding decision within a very short timescale. Adjudication can be an effective tool to restore cash flow and resolve discrete issues swiftly, with enforcement available in the Technology and Construction Court.
Mediation is frequently used to achieve a negotiated settlement and is strongly encouraged by the courts. Some contracts specify arbitration. Where litigation is necessary, claims are typically issued in the Technology and Construction Court, which has specialist judges and procedures tailored to construction and engineering disputes.
Proving breach and mitigating loss
Successful claims or defences depend on contemporaneous evidence. Programmes, site diaries, photographs, testing records, instructions, notices, meeting minutes and cost data are all critical. We help you assemble, organise and present the right evidence to prove breach, causation and quantum.
Parties also have a duty to mitigate loss. We will advise on sensible, cost‑effective steps to limit ongoing damage without undermining your contractual position.
Steps to take now
- Review your contract and identify notice requirements and time bars
- Preserve evidence including emails, drawings, programmes and cost records
- Diarise key dates for pay applications, pay less notices and extensions of time
- Consider immediate mitigation measures and record decisions contemporaneously
- Seek early advice before suspending works or terminating
- Engage experts where technical or quantum issues are complex
Costs and funding
From the outset we provide transparent pricing and a cost‑benefit assessment aligned to your commercial goals. Subject to case merits, we can explore a range of funding options, which may include fixed‑fee scoping stages, staged or capped fees, after the event insurance and, in suitable matters, alternative fee arrangements. We will always discuss what best fits your risk profile and cash flow.
Frequently asked questions
What is a breach of a construction contract?
A breach arises when a party fails to comply with an obligation set out in the contract, performs late or defectively, or makes clear it does not intend to perform. In construction, this commonly concerns payment, time, quality, scope and termination provisions.
Do i have to follow notice provisions?
Yes. Most construction contracts contain strict notice and time bar requirements for claims such as extensions of time, loss and expense or variations. Failure to give a compliant notice can defeat an otherwise valid claim.
Should i use adjudication or court proceedings?
Adjudication offers a fast, cost‑effective route to a temporarily binding decision and is often used to restore cash flow during a project. Court proceedings in the Technology and Construction Court may be necessary for final determination or complex issues. The best route depends on your objectives and the issues in dispute.
Can i terminate for breach?
Only where the contract and the facts allow. Wrongful termination can itself be a repudiatory breach. Always take legal advice before suspending works or terminating, and ensure all pre‑conditions and notices are satisfied.
What losses can i recover?
Subject to proving breach, causation and mitigation, you may recover cost of cure, prolongation and preliminaries, loss of profit, professional fees and other foreseeable losses. Some contracts limit or exclude certain heads of loss, so careful analysis is essential.
How long do i have to bring a claim?
Limitation typically runs for six years from breach under a simple contract or twelve years for deeds, though the period can vary. Do not delay; seek advice promptly to protect your position.
What if the other party has issued a pay less notice?
We will test the validity of the notice against contractual and statutory requirements. An invalid notice can result in a smash and grab adjudication in your favour for the notified sum, subject to any subsequent true value process.
Contact us
If you are facing a breach of contract in a construction dispute, speak to our specialist solicitors today. Call 0161 696 6170 or fill in our enquiry form for a prompt call back.
We will assess your position quickly, advise on the best strategy and take decisive action to protect your commercial interests.
