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
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.
The benefits of engaging with insulation manufacturers
When considering ground floor constructions.
Lighting Industry endorses Blueprint for Electrification
The Lighting Industry Association fully supports the ECA Blueprint as a timely, urgent call to action.
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.