Our collective thoughts

In her latest blog, Claire King examines the Government’s decision to ban retention payments in construction contracts. She explores what this means for subcontractors, developers and the wider industry, and considers the challenges ahead as standard forms and quality control mechanisms adapt to a post‑retentions landscape.

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 NEC’s new Conflict Avoidance Clauses, for use with the NEC4 ECC form, were announced earlier this year and are intended to prevent the escalation of “disagreements” into “disputes”. In this blog, Claire King reviews how they are meant to operate in the context of contracts that are already subject to statutory adjudication and examines the extent to which parties should be adding them to their dispute resolution toolkit.