Payment clauses

Payment clauses

The clause bank for construction lawyers brings together examples of the most commonly used clauses from construction contracts. The clauses are drafted for construction practitioners together with drafting notes giving guidance on how these clauses should be used. The clauses are arranged alphabetically

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Latest Construction News

Construction weekly highlights—27 November 2025

This week's edition of Construction weekly highlights includes key construction announcements from the Autumn Budget 2025, the Building Safety Levy England Regulations 2025, the Welsh Government’s publication of the outcome of its consultation on the new higher-risk building control regime, a Commercial Court decision holding that a contract was concluded on previously negotiated bespoke terms without incorporation of the defendant's standard conditions, and that statutory implied terms applied (Tullow Ghana Ltd v Vallourec Oil & Gas France SAS), a Court of Appeal decision on the knowledge requirement for waiver by election in commercial contracts (URE Energy Ltd v Notting Hill Genesis), the International Organization for Standardization (ISO)’s launch of the first global standard focused on biodiversity, guidance from the Institution of Structural Engineers (IStructE) on embodied-carbon best practice and reporting procedures, the Infrastructure (Wales) Act 2024 (Consequential, Transitional, Revocation and Saving Provisions) Regulations 2025, the All-Party Parliamentary Group’s report on infrastructure delivery reforms, the Courts and Tribunals Judiciary (CATJ)’s announcement of a disclosure review working group survey on PD57AD and use of TAR and AI in disclosure, commentary on the European Commission’s decision not to regulate third-party litigation funding, a Scottish Court of Session case on the certification of experts (Spence and another v Graham) and the Welsh Government’s built environment mission statement and digital action plan.

Court considers limits of the court’s jurisdiction to retrospectively extend time for the service of proceedings (Galliford Try Construction v Arcadis Consulting (UK) Ltd)

Dispute Resolution analysis: This case confirms the dangers of parties seeking to extend the deadline for service of the claim Form and particulars retrospectively. The argument that the defendants had impliedly agreed to the extension was not made out and, in any event, a retrospective extension will only be granted under CPR 7.6 (3) where the claimant has taken ‘all reasonable steps’ to serve the claim form (where the onus is on them to do so). The claimant had taken no such steps to serve in advance of the expiry of the deadline and, accordingly, the court lacked jurisdiction to hear the application. Further, this case confirms that, while CPR 2.11 allows parties to vary the time specified to undertake an act by written agreement, to be effective, a stay must be pursuant to an order of the court. Written by Georgia Whiting, legal counsel at Capita.

CIC responds to Chancellor's Autumn Budget infrastructure and planning measures

The Construction Industry Council (CIC) has published its response to the Chancellor's Autumn Budget delivered on 26 November 2025. The budget confirmed continued investment in major infrastructure projects including Sizewell C and the Lower Thames Crossing, alongside regional regeneration initiatives. Key measures include funding to recruit 350 additional planners in England to address planning bottlenecks and accelerate social housing delivery, and £13bn devolved to local mayors for skills development and infrastructure projects. From April 2026, the minimum wage for apprentices will increase by 6%. The government also confirmed landfill tax reform and ruled out further increases in National Insurance. The CIC noted the absence of incentives for first-time buyers and highlighted concerns about construction workforce capacity, citing research indicating the construction workforce has fallen to its lowest proportion of total UK employment in over 100 years.

DEFRA updates framework for evaluating category B evidence in timber procurement

The Department for Environment, Food & Rural Affairs (DEFRA) has published its updated guidance setting out how procurement authorities and suppliers should provide and assess Category B evidence when demonstrating that timber and wood-derived products meet the government’s definitions of ‘legal’ and ‘sustainable’. The document explains that Category B evidence is used when approved certification schemes (Category A) are not relied upon, and must show that at least 70% of the supplied material comes from legal and sustainable sources, in line with the Timber Procurement Policy. It clarifies the relationship between the Policy and the UK Timber Regulations (UKTR), noting that UKTR compliance may help demonstrate legality but does not replace the requirement to evidence sustainability. The guidance also outlines obligations for products within and outside the UKTR scope, including the continued need for evidence even where recycled or heavily processed items are not regulated under the UKTR.