Frustration in construction contracts
Frustration occurs when circumstances that are not the fault of either party to a contract mean it is impossible to continue with the contract. As a result, the contract comes to an end without either party being considered to be in breach. However, the parties must be certain that a frustration event has occurred so as not to be in breach of contract.
Frustration is a common legal principle, but it is applied as narrowly as possible by the courts - it does not cover contracts that were always going to be impossible to perform. For example, it would not apply in the case of a contract to construct a tall building that could not be fulfilled because the ground conditions were completely unsuitable.
Identifying the contractual obligations of the parties at the date of the contract is key to being able to establish the conditions for frustration.
Some events that may lead to a frustrated contract include:
- The government imposing unforeseen restrictions on building.
- Laws being passed that make it illegal to undertake what was promised under the contract
- The building where works were to be carried out being destroyed.
- An event that was crucial for the contractual obligations being cancelled.
Sometimes a party may try to claim a contract is frustrated when they are obligated to make payments in a different currencies which then fluctuates. However, this does not necessarily amount to frustration.
Events that do not alter the obligations but instead delay performance, such as a workforce strike, don’t necessarily amount to frustration. However, it might do should the events have a particularly serious effect on the obligations or if the delay is particularly long.
Force majeure provisions might provide for circumstances that could otherwise be considered frustration events, and so result in termination of the contract. However, generally, force majeure (for example, exceptionally adverse weather conditions) is considered a relevant event which construction contracts allow for by an extension of time rather than termination.
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
The UK's Modern Industrial Strategy: A 10 year plan
Previous consultation criticism, current key elements and general support with some persisting reservations.
Building Safety Regulator reforms
New roles, new staff and a new fast track service pave the way for a single construction regulator.
Architectural Technologist CPDs and Communications
CIAT CPD… and how you can do it!
Cooling centres and cool spaces
Managing extreme heat in cities by directing the public to places for heat stress relief and water sources.
Winter gardens: A brief history and warm variations
Extending the season with glass in different forms and terms.
Restoring Great Yarmouth's Winter Gardens
Transforming one of the least sustainable constructions imaginable.
Construction Skills Mission Board launch sector drive
Newly formed government and industry collaboration set strategy for recruiting an additional 100,000 construction workers a year.
New Architects Code comes into effect in September 2025
ARB Architects Code of Conduct and Practice available with ongoing consultation regarding guidance.
Welsh Skills Body (Medr) launches ambitious plan
The new skills body brings together funding and regulation of tertiary education and research for the devolved nation.
Paul Gandy FCIOB announced as next CIOB President
Former Tilbury Douglas CEO takes helm.
UK Infrastructure: A 10 Year Strategy. In brief with reactions
With the National Infrastructure and Service Transformation Authority (NISTA).
Ebenezer Howard: inventor of the garden city. Book review.
The Grenfell Tower fire, eight years on
A time to pause and reflect as Dubai tower block fire reported just before anniversary.
Airtightness Topic Guide BSRIA TG 27/2025
Explaining the basics of airtightness, what it is, why it's important, when it's required and how it's carried out.
Construction contract awards hit lowest point of 2025
Plummeting for second consecutive month, intensifying concerns for housing and infrastructure goals.
Understanding Mental Health in the Built Environment 2025
Examining the state of mental health in construction, shedding light on levels of stress, anxiety and depression.