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Disputes in JCT contracts

Disputes in JCT contracts can arise quickly and often turn on the precise wording of the contract, the timing and content of notices, and the quality of project records. Whether you are an employer, contractor, subcontractor or a homeowner using a JCT form, early, specialist advice is essential to protect your position and resolve issues cost effectively. Stephensons’ construction dispute solicitors advise clients across England and Wales on the full range of JCT contract disputes, from urgent payment adjudications to complex delay and defects claims in the Technology and Construction Court.

We combine a detailed understanding of the JCT suite with clear, commercial guidance. Our team acts in adjudication, mediation, arbitration and court proceedings, and regularly helps clients to negotiate practical settlements that keep projects moving and manage risk. If you are facing a disagreement under a JCT contract, we can help you take swift, decisive steps to achieve the best possible outcome.

 

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How we can help

We advise on every type of dispute under the JCT standard building contract, design and build, intermediate, minor works, measured term and homeowner forms, including amendments and bespoke schedules of amendments. Typical issues include payment disputes, final account disagreements, variations, delay and disruption, extensions of time, liquidated damages, loss and expense, defects and snagging, design responsibility, practical completion, sectional completion, retention and termination.

Our lawyers act at pace where urgent action is needed, for example to commence or defend adjudication within tight timescales, to challenge or enforce an adjudicator’s decision in the technology and construction court, or to secure disclosure of project records. We also support clients with pre-action protocol steps, expert evidence and negotiation strategies to narrow the issues and reduce cost.

Why choose us

Stephensons is a full service law firm with a long standing reputation for clear advice and robust representation. Our dispute resolution team includes solicitors with deep experience of construction and engineering conflicts, supported by sector aware litigators who understand how to align legal strategy with your commercial objectives.

We are trusted by businesses, public bodies and private clients across the country. Our firm is regulated by the solicitors regulation authority and is committed to the highest standards of client care, transparent pricing and effective risk management. Clients value our responsiveness, our ability to cut through complexity and our track record in securing favourable outcomes in adjudication and court proceedings.

Stephensons is widely recognised for its litigation capability across multiple practice areas. Our firm’s strong reputation for tenacious advocacy, including in our nationally regarded criminal law team, reflects the disciplined case preparation and courtroom experience we bring to construction disputes when negotiation is not enough.

Common issues in JCT contract disputes

Payment disputes: inadequate payment notices or pay less notices, applications for payment, final account assessments and alleged overpayment or underpayment, including so called smash and grab and true value adjudications under the construction act.

Time and delay: entitlement to extensions of time, notices and particulars, concurrency, relevant events and the impact on completion dates and liquidated damages.

Loss and expense: claims for prolongation costs, disruption, preliminaries and head office overheads, and the evidential burden required to substantiate entitlement under the relevant clauses.

Variations and scope: whether a change is a variation, valuation rules, dayworks, design development versus change and disputes arising from provisional sums.

Defects and quality: breach of workmanship standards, design liability in design and build forms, practical completion, defects liability periods and the cost of remedial work.

Termination and suspension: rights to terminate for default or insolvency, consequences of termination, suspension for non payment and mitigation of loss following termination.

Adjudication under JCT contracts

Most JCT contracts include an adjudication clause, and the construction act gives parties a statutory right to adjudicate at any time. Adjudication is fast paced, with a typical 28 day timetable from referral to decision. It is an effective mechanism to resolve interim payment disputes and urgent issues, but procedural missteps can undermine your case or render an award vulnerable to challenge.

We prepare and defend adjudications involving payment notices, pay less notices, extensions of time, loss and expense, valuation of variations and termination accounts. Our team manages jurisdictional points, works with appropriate experts and compiles persuasive submissions within tight deadlines. If necessary, we act quickly to enforce or resist enforcement of adjudicator’s decisions in the Technology and Construction Court.

Litigation, arbitration and mediation

Not every dispute is suitable for adjudication. We guide clients through the pre action protocol for construction and engineering disputes, exploring mediation and without prejudice negotiation at an early stage. Where formal proceedings are appropriate, we issue or defend claims in the technology and construction court or commence arbitration in line with the contract’s dispute resolution provisions.

Our approach is to match the forum to the dispute. For highly technical, quantum heavy matters, a staged process with expert evidence may be best. For a focused payment issue, adjudication may achieve a swift, tactical result. We will explain your options clearly and recommend a route that balances cost, speed and risk.

Which JCT forms we cover

We work with the full JCT suite, including the standard building contract, design and build contract, intermediate building contract, minor works building contract, measured term contract and homeowner contracts.

Who we act for

Employers and developers: managing payment processes and notices, defending extension of time and loss and expense claims, pursuing defects and liquidated damages, advising on completion, sectional completion and termination.

Main contractors: securing interim payments and final account balances, defending smash and grab and true value challenges, prosecuting variation and prolongation claims, and responding to defects and delay allegations.

Subcontractors and specialists: asserting rights to payment, retention release and variations, navigating back to back terms, and defending pass through delay or defects claims.

Homeowners: advice on JCT homeowner contracts, scope and quality disputes, delay, termination and recovery of costs for remedial work.

Time limits and notices

Strict time bars often apply under JCT forms, particularly for notices of delay, suspension or termination, payment applications and pay less notices. Missing a deadline can significantly affect your rights. Limitation periods also matter: claims under simple contracts are generally subject to a six year period, and claims under deeds often carry a twelve year period. We will review your contract, programme and records swiftly to make sure critical steps are taken on time.

Practical steps to protect your position

Check the contract version and amendments: identify the exact JCT form, any bespoke amendments and the programme and payment schedule that apply.

Preserve contemporaneous records: keep applications for payment, notices, instructions, site diaries, progress photos, programmes, change orders and correspondence organised and accessible.

Comply with notice provisions: serve timely, compliant notices for payment, delay, loss and expense and pay less where relevant. We can draft or review notices at short notice.

Seek early advice: early intervention often prevents a disagreement from escalating and improves your tactical options in adjudication or negotiation.

Costs and funding

We provide clear, upfront costs information and a funding plan that suits the dispute and your objectives. Depending on the case, we may offer fixed fees for defined stages, capped fees or blended hourly rates. We will always discuss costs proportionately to the sums and risks involved.

Frequently asked questions

What is a JCT contract?

The joint contracts tribunal publishes standard form building contracts widely used in the uk construction industry. JCT contracts allocate risk between the parties and set out procedures for payment, changes, delay, defects and dispute resolution. They are often tailored by schedules of amendments to suit the project.

How are disputes in JCT contracts usually resolved?

Disputes can be resolved by negotiation, mediation, adjudication, arbitration or court proceedings. Adjudication is common for payment and interim issues because it offers a binding, quick decision that can later be revisited in arbitration or litigation if necessary.

Can I start adjudication at any time?

Yes. The construction act provides a right to adjudicate at any time. However, timing, jurisdiction and the scope of the dispute are critical. Getting tactical advice before you start can improve your prospects and reduce the risk of jurisdictional challenges.

What is a smash and grab adjudication?

This typically arises where a payer fails to issue a valid payment notice or pay less notice. The payee may seek the full applied sum on a technical basis, regardless of the true value. The payer may later seek a true value assessment in a subsequent adjudication, but only after making payment of the notified sum if the contract and case law require it.

What evidence do I need for delay and loss and expense?

You should collate the contract programme and updates, delay notices, instructions, resource records, site diaries, correspondence, photographs and cost records demonstrating the cause and effect of delay and the additional costs incurred. Expert programming and quantum evidence is often helpful for larger claims.

What are liquidated damages and can they be challenged?

Liquidated damages are pre agreed sums payable for delay beyond the completion date. Challenges can arise over validity of the damages clause, prevention, entitlement to extensions of time, and whether the employer complied with any contractual notices required to levy the damages.

Do I need to follow the pre action protocol?

If proceedings are contemplated in the Technology and Construction Court, the pre action protocol for construction and engineering disputes generally applies. It encourages early exchange of information and consideration of settlement or mediation. We will guide you through each step to protect your position.

What are the limitation periods for JCT claims?

As a general rule, six years for simple contracts and twelve years for deeds from the date the cause of action accrues, subject to specific facts and any contractual provisions. You should seek advice promptly to avoid time bars.

Contact us

For immediate advice on disputes in JCT contracts, call Stephensons on 0161 696 6170. Alternatively, fill in our enquiry form for a callback and one of our specialists will contact you.

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