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 challenge as PFI agreements come to an end
How construction deals with inherit assets built under long-term contracts.
Skills plan for engineering and building services
Comprehensive industry report highlights persistent skills challenges across the sector.
Choosing the right design team for a D&B Contract
An architect explains the nature and needs of working within this common procurement route.
Statement from the Interim Chief Construction Advisor
Thouria Istephan; Architect and inquiry panel member outlines ongoing work, priorities and next steps.
The 2025 draft NPPF in brief with indicative responses
Local verses National and suitable verses sustainable: Consultation open for just over one week.
Increased vigilance on VAT Domestic Reverse Charge
HMRC bearing down with increasing force on construction consultant says.
Call for greater recognition of professional standards
Chartered bodies representing more than 1.5 million individuals have written to the UK Government.
Cutting carbon, cost and risk in estate management
Lessons from Cardiff Met’s “Halve the Half” initiative.
Inspiring the next generation to fulfil an electrified future
Technical Manager at ECA on the importance of engagement between industry and education.
Repairing historic stone and slate roofs
The need for a code of practice and technical advice note.
Environmental compliance; a checklist for 2026
Legislative changes, policy shifts, phased rollouts, and compliance updates to be aware of.
UKCW London to tackle sector’s most pressing issues
AI and skills development, ecology and the environment, policy and planning and more.
Managing building safety risks
Across an existing residential portfolio; a client's perspective.
ECA support for Gate Safe’s Safe School Gates Campaign.
Core construction skills explained
Preparing for a career in construction.
Retrofitting for resilience with the Leicester Resilience Hub
Community-serving facilities, enhanced as support and essential services for climate-related disruptions.





















