Contract execution
Contract execution is the process of signing an agreed contract, after which its terms become binding on the parties to the contract.
Contract engrossment is the process of preparing the final agreed form of contract and its schedules and appendices so that it can be executed. Engrossed contracts are then either executed under seal (signed by the parties, witnessed and most importantly made clear that they are executed as a deed) or under hand (a 'simple contract' that is just signed by the parties).
Simple contracts and contracts under seal have different limitation periods. An action founded on simple contract cannot be brought after six years from the date on which the cause of the action accrued. The limitation period for a contract under seal is 12 years. See Contracts under seal v under hand for more information.
Generally, two engrossed contracts will be prepared for execution, one for the client and one for the supplier. Alternatively, one party might retain the executed contract, with certified copies being issued to the other party, this can avoid potential errors in preparing two contracts for execution.
It is very important to ensure all details entered into the contract are correct before signing. It is surprisingly common for example for the wrong company to be named in the contract, and whilst the courts may see this as a clerical error that should be corrected, this should not be relied upon, particularly in the case of insolvency, and court proceedings in themselves are likely to be costly and time consuming.
See:
- Derek Hodd Limited v Climate Change Capital Limited.
- Genesis Housing Association Limited v Liberty Syndicate Management Limited.
- Westshield Civil Engineering Ltd and Westshield Ltd v Buckingham Group Contracting Ltd.
It is also relatively common for contract execution to be delayed until well after the actual works described in the contract have been started. Clearly this is not advisable.
Letters of intent are sometimes used as interim arrangements to mobilise a supplier prior to a formal contract being executed, but they should never be seen as an alternative to a full contract and should place a limit on expenditure and liability prior to the contract being put in place. See letter of intent for more information.
[edit] Related articles on Designing Buildings
- Articles of agreement.
- Conformed contract.
- Construction contract.
- Construing a contract.
- Contract award.
- Contract conditions.
- Contract documents.
- Contract engrossment
- Contracts under seal v under hand.
- Derek Hodd Limited v Climate Change Capital Limited.
- ESignatures.
- Essentials of a contract.
- Form of tender.
- Genesis Housing Association Limited v Liberty Syndicate Management Limited.
- Glossary of property law terms.
- Letter of intent.
- Privity of contract.
- Westshield Civil Engineering Ltd and Westshield Ltd v Buckingham Group Contracting Ltd.
Featured articles and news
BSRIA Sentinel Clerk of Works Training Case Study
Strengthening expertise to enhance service delivery with integrated cutting-edge industry knowledge.
Impact report from the Supply Chain Sustainability School
Free sustainability skills, training and support delivered to thousands of UK companies to help cut carbon.
The Building Safety Forum at the Installershow 2025
With speakers confirmed for 24 June as part of Building Safety Week.
The UK’s largest air pollution campaign.
Future Homes Standard, now includes solar, but what else?
Will the new standard, due to in the Autumn, go far enough in terms of performance ?
BSRIA Briefing: Cleaner Air, Better tomorrow
A look back at issues relating to inside and outside air quality, discussed during the BSRIA briefing in 2023.
Restoring Abbotsford's hothouse
Bringing the writer Walter Scott's garden to life.
Reflections on the spending review with CIAT.
Retired firefighter cycles world to raise Grenfell funds
Leaving on 14 June 2025 Stephen will raise money for youth and schools through the Grenfell Foundation.
Key points for construction at a glance with industry reactions.
Functionality, visibility and sustainability
The simpler approach to specification.
Architects, architecture, buildings, and inspiration in film
The close ties between makers and the movies, with our long list of suggested viewing.
SELECT three-point plan for action issued to MSPs
Call for Scottish regulation, green skills and recognition of electrotechnical industry as part of a manifesto for Scottish Parliamentary elections.
UCEM becomes the University of the Built Environment
Major milestone in its 106-year history, follows recent merger with London School of Architecture (LSE).
Professional practical experience for Architects in training
The long process to transform the nature of education and professional practical experience in the Architecture profession following recent reports.
A people-first approach to retrofit
Moving away from the destructive paradigm of fabric-first.
New guide for clients launched at Houses of Parliament
'There has never been a more important time for clients to step up and ...ask the right questions'
The impact of recycled slate tiles
Innovation across the decades.
EPC changes for existing buildings
Changes and their context as the new RdSAP methodology comes into use from 15 June.