Governing law
The term "governing law" refers to the legal framework that determines the rights and obligations of the parties involved in a construction contract. The governing law is essential for providing a clear legal framework that governs the interpretation, execution, and enforcement of construction contracts. It helps ensure that all parties understand their legal rights and obligations within the context of the chosen legal jurisdiction.
The governing law clause specifies which country's laws will be used to interpret the contract and resolve any disputes that arise from it. In the UK, this would typically mean either the laws of England and Wales, Scotland, or Northern Ireland, depending on the jurisdiction agreed upon by the parties.
By clearly specifying the governing law, parties can avoid confusion and legal uncertainty, which can be crucial for managing complex construction projects effectively. The governing law affects the enforceability of the contract. Courts in the specified jurisdiction will apply their own legal principles to enforce the terms of the contract. In addition, construction projects must comply with various regulatory requirements, such as the building regulations, health and safety laws, tax requirements, payment procedures, environmental laws and so on. The governing law ensures that the contract aligns with these legal standards.
See also: Jurisdiction clause.
[edit] Related articles on Designing Buildings
- Agreement.
- Bespoke construction contract.
- Construction contract.
- Contract documents for construction.
- Contractual obligation.
- Contractual right.
- Housing Grants, Construction and Regeneration Act HGRA.
- Jurisdiction clause.
- Memorandum of understanding.
- Modifying clauses in standard forms of construction contract.
- Scheme for construction contracts.
- Traditional contract for construction.
Featured articles and news
How can digital twins boost profitability within construction?
A brief description of a smart construction dashboard, collecting as-built data, as a s site changes forming an accurate digital twin.
Unlocking surplus public defence land and more to speed up the delivery of housing.
The Planning and Infrastructure bill oulined
With reactions from IHBC and others on its potential impacts.
Farnborough College Unveils its Half-house for Sustainable Construction Training.
Spring Statement 2025 with reactions from industry
Confirming previously announced funding, and welfare changes amid adjusted growth forecast.
Scottish Government responds to Grenfell report
As fund for unsafe cladding assessments is launched.
CLC and BSR process map for HRB approvals
One of the initial outputs of their weekly BSR meetings.
Architects Academy at an insulation manufacturing facility
Programme of technical engagement for aspiring designers.
Building Safety Levy technical consultation response
Details of the planned levy now due in 2026.
Great British Energy install solar on school and NHS sites
200 schools and 200 NHS sites to get solar systems, as first project of the newly formed government initiative.
600 million for 60,000 more skilled construction workers
Announced by Treasury ahead of the Spring Statement.
The restoration of the novelist’s birthplace in Eastwood.
Life Critical Fire Safety External Wall System LCFS EWS
Breaking down what is meant by this now often used term.
PAC report on the Remediation of Dangerous Cladding
Recommendations on workforce, transparency, support, insurance, funding, fraud and mismanagement.
New towns, expanded settlements and housing delivery
Modular inquiry asks if new towns and expanded settlements are an effective means of delivering housing.
Building Engineering Business Survey Q1 2025
Survey shows growth remains flat as skill shortages and volatile pricing persist.