Jurisdiction clause
A jurisdiction clause is a provision included in a construction contract that specifies which court or legal system will have the authority to resolve any disputes that arise between the parties involved in the contract. This clause is critical for determining the legal framework and geographical location where disputes will be adjudicated.
The clause explicitly states the chosen jurisdiction, typically a specific country or legal system, that will govern any legal proceedings. For instance, it might specify that disputes will be resolved under the laws of England and Wales.
By clearly defining the jurisdiction, the clause provides legal certainty and predictability for all parties, ensuring they know where and under what legal framework disputes will be resolved. This can influence the decision-making process regarding legal strategies and potential litigation costs. The jurisdiction clause typically covers all types of disputes arising from the contract, including but not limited to contractual breaches, negligence, and other tort claims related to the construction project.
The jurisdiction clause often works in conjunction with a governing law clause, which specifies the legal principles that will be applied to interpret the contract. While the governing law clause determines the applicable legal rules, the jurisdiction clause identifies the forum for dispute resolution. If the contract includes provisions for alternative dispute resolution (ADR) methods such as arbitration or mediation, the jurisdiction clause may also outline the applicable rules and location for these processes. However, arbitration agreements may have separate arbitration clauses that specify the arbitration venue and governing rules.
In cases where parties to the contract are from different countries, the jurisdiction clause is particularly important in avoiding jurisdictional conflicts and ensuring that there is an agreed-upon venue for resolving disputes. The drafting of the jurisdiction clause is often a key point of negotiation between contracting parties. Each party may have preferences based on their familiarity with certain legal systems, perceived fairness, and logistical considerations.
Exclusive jurisdiction indicates that only the courts of the specified jurisdiction have the authority to hear disputes. This prevents any party from bringing a legal action in any other jurisdiction. Non-exclusive jurisdiction allows for the possibility of disputes being heard in courts of other jurisdictions, although the specified jurisdiction is preferred.
See also: Governing law.
[edit] Related articles on Designing Buildings
- Agreement.
- Bespoke construction contract.
- Construction contract.
- Contract documents for construction.
- Contractual obligation.
- Contractual right.
- Governing law.
- Housing Grants, Construction and Regeneration Act HGRA.
- Memorandum of understanding.
- Modifying clauses in standard forms of construction contract.
- Scheme for construction contracts.
- Traditional contract for construction.
Featured articles and news
Gregor Harvie argues that AI is state-sanctioned theft of IP.
Heat pumps, vehicle chargers and heating appliances must be sold with smart functionality.
Experimental AI housing target help for councils
Experimental AI could help councils meet housing targets by digitising records.
New-style degrees set for reformed ARB accreditation
Following the ARB Tomorrow's Architects competency outcomes for Architects.
BSRIA Occupant Wellbeing survey BOW
Occupant satisfaction and wellbeing tool inc. physical environment, indoor facilities, functionality and accessibility.
Preserving, waterproofing and decorating buildings.
Many resources for visitors aswell as new features for members.
Using technology to empower communities
The Community data platform; capturing the DNA of a place and fostering participation, for better design.
Heat pump and wind turbine sound calculations for PDRs
MCS publish updated sound calculation standards for permitted development installations.
Homes England creates largest housing-led site in the North
Successful, 34 hectare land acquisition with the residential allocation now completed.
Scottish apprenticeship training proposals
General support although better accountability and transparency is sought.
The history of building regulations
A story of belated action in response to crisis.
Moisture, fire safety and emerging trends in living walls
How wet is your wall?
Current policy explained and newly published consultation by the UK and Welsh Governments.
British architecture 1919–39. Book review.
Conservation of listed prefabs in Moseley.
Energy industry calls for urgent reform.