Good faith in construction contracts


Published by a UUÂãÁÄÖ±²¥ Construction expert
Practice notes

Good faith in construction contracts


Published by a UUÂãÁÄÖ±²¥ Construction expert

Practice notes
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This PrACTice Note considers if and when a Duty of good faith may be implied into a construction Contract, and also looks at some of the standard form construction contracts which contain express obligations to act in Good faith, including their effect on the parties’ obligations.

It is a long established principle that there is no general duty of good faith in English law (unlike many other legal systems). There are only very limited categories of contract where such a duty applies, including certain insurance and employment contracts and fiduciary relationships.

A universal duty to act in good faith will not therefore automatically be implied into a construction contract. Several standard form construction contracts include express obligations to act in a spirit of good faith, but, as this Practice Note considers, it is likely that this would only have limited effect on the parties’ obligations.

The case of Yam Seng seemed as if it might open the door to introducing a general implied duty in commercial contracts for the parties to act in good faith. This case

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Jurisdiction(s):
United Kingdom
Key definition:
Good faith definition
What does Good faith mean?

An overarching concept for being open and honest in negotiations that goes beyond the idea of not deceiving the other party.

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