Jurisdiction(s):
United Kingdom

Settlement as variation preserves HGCRA adjudication: TCC enforces decision under original JCT contract (London Eco Homes v Raise Now Ealing)

Published on: 08 July 2025

Published by a LexisNexis Construction expert

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London Eco Homes Ltd v Raise Now Ealing Ltd [2025] EWHC 1505 (TCC) What are the practical implications of this case?

Where a settlement agreement concerns a construction contract, disputes about that settlement can still go to adjudication if the settlement is treated as a variation of the initial construction contract and the original terms contained adjudication provisions, whether express or implied by statute. Parties must not presume that adopting a settlement with standalone dispute resolution terms (that omit adjudication) removes the option of referring settlement disputes to adjudication. If there is an underlying construction contract, recipients under any later settlement will typically wish to preserve their ability to refer disputes arising out of the settlement to adjudication, particularly if the settlement is not honoured, as an efficient form of ADR. This ruling confirms that, as a modification of the original bargain, a settlement can carry over the statutory or contractual right to adjudicate despite any new procedural wording. Accordingly, parties should not assume a bespoke dispute clause displaces adjudication here, and receiving parties will generally seek to keep that swift route open where there is non-compliance...

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