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
The 5 elements of seiri, seiton, seiso, seiketsu and shitsuke.
Shading for housing, a design guide
A look back at embedding a new culture of shading.
The Architectural Technology Awards
The AT Awards 2025 are open for entries!
ECA Blueprint for Electrification
The 'mosaic of interconnected challenges' and how to deliver the UK’s Transition to Clean Power.
Grenfell Tower Principal Contractor Award notice
Tower repair and maintenance contractor announced as demolition contractor.
Passivhaus social homes benefit from heat pump service
Sixteen new homes designed and built to achieve Passivhaus constructed in Dumfries & Galloway.
CABE Publishes Results of 2025 Building Control Survey
Concern over lack of understanding of how roles have changed since the introduction of the BSA 2022.
British Architectural Sculpture 1851-1951
A rich heritage of decorative and figurative sculpture. Book review.
A programme to tackle the lack of diversity.
Independent Building Control review panel
Five members of the newly established, Grenfell Tower Inquiry recommended, panel appointed.
Welsh Recharging Electrical Skills Charter progresses
ECA progressing on the ‘asks’ of the Recharging Electrical Skills Charter at the Senedd in Wales.
A brief history from 1890s to 2020s.
CIOB and CORBON combine forces
To elevate professional standards in Nigeria’s construction industry.
Amendment to the GB Energy Bill welcomed by ECA
Move prevents nationally-owned energy company from investing in solar panels produced by modern slavery.
Gregor Harvie argues that AI is state-sanctioned theft of IP.
Experimental AI housing target help for councils
Experimental AI could help councils meet housing targets by digitising records.
BSRIA Occupant Wellbeing survey BOW
Occupant satisfaction and wellbeing tool inc. physical environment, indoor facilities, functionality and accessibility.