In August 2024, the Court of Appeal handed down its judgment in which it held that a contractor was entitled to terminate its employment based on just two late payments, each of which was rectified within 14 days. In our blog at the time, we explained how the decision was a stark warning to employers, with the Court of Appeal itself noting how the decision left them on thin ice in respect of late payments. However, the Supreme Court has now overturned the Court of Appeal’s decision and restored the leeway afforded to employers under the JCT contract.

The UK Supreme Court handed down its much-anticipated judgment in the case of URS Corporation Ltd v BDW Trading Ltd [2025] UKSC 21. The appeal was heard by a full panel of 7 justices who dismissed URS’s appeal on all 4 grounds. The judgment runs to 88 pages and is a must read for anyone working in the construction sector. This article examines the judgment, discussing the key issues arising and practical implications for those likely to be affected, including developers, contractors, consultants and insurers.

Paul Smylie reports on the Court of Appeals decision in Providence Building Services Ltd v Hexagon Housing Association Ltd [2024] EWCA Civ 962, which held that the Contractor was entitled to terminate its employment based on just two late payments, each of which was rectified within 14 days.