< Back to insights hub

Article

WhatsApp Doc? The pitfalls of adjudicating on an uncertain contractual basis – High Tech Construction Limited v WLP Trading and Marketing Limited 9 February 2026

"This case explored how a disputed contract can negate an adjudicator’s jurisdiction to award payment, limit fraud challenges, and reinforces the need for clear contractual formation."

In this article, Partner Rebecca Williams, Senior Associate Jack Moulder and Trainee Solicitor Katherine Pearce consider the recent judgment in High Tech Construction Ltd v WLP Trading and Marketing Ltd. This case explored how a disputed contract can negate an adjudicator’s jurisdiction to award payment, limit fraud challenges, and reinforces the need for clear contractual formation.

On 30 January 2026, the High Court recently handed down a decision in the case of High Tech Construction Limited v WLP Trading and Marketing Limited, where it held that adjudication enforcement cannot proceed where there is a credible challenge to the very existence of the contract said to underpin an adjudicator’s jurisdiction. This case is an important reminder for the construction sector that clear contractual formation is essential. If the contract on which the adjudication is founded proves to be non-existent, the entire adjudication may unravel.

Factual Background   

High Tech Construction Ltd (“HTC”) carried out construction works on a residential development owned by WLP Trading & Marketing Limited (“WLP”). A dispute arose in respect of these works, culminating in an adjudication in which WLP was ordered to pay HTC approximately two million pounds. HTC subsequently sought to enforce that adjudication decision in the High Court.

WLP resisted the enforcement on three grounds:

  1. “that the Adjudicator lacked jurisdiction because the contract relied upon by HTC was not the genuine agreement between the parties;
  2. that the Decision was procured by fraud; and
  3. that, if enforced, the sum should be paid into court due to HTC’s alleged impecuniosity.”

The most consequential objection advanced by WLP was the jurisdictional challenge. The parties fundamentally disagreed whether a JCT contract had ever been formed. HTC maintained that such a contract was concluded during a meeting between the parties, whereas WLP denied that any JCT agreement had been entered into.

Within the adjudication, WLP further contended that the document relied upon by HTC had been produced under entirely different circumstances, was never intended to have contractual effect, and that HTC’s reliance on the document as the basis for a payment claim was therefore fraudulent.

Contract Formation Issues

< Back to insights hub

"The parties’ arrangement for the works was poorly documented, leading to two entirely incompatible accounts of whether a contract had ever been formed."

The parties’ arrangement for the works was poorly documented, leading to two entirely incompatible accounts of whether a contract had ever been formed. HTC said an “Enabling Works Contract” arose through informal discussions and messages. WLP contested that these communications showed the opposite, relying on contemporaneous records that indicated no contract was in place. Even the WhatsApp exchanges could be interpreted to support either narrative.

The court ultimately did not need to determine whether a JCT contract existed, but highlighted the “competing mutually exclusive narratives” and noted that each side had a real prospect of proving its version. The case underscores the risks of relying on ad‑hoc, informal exchanges when attempting to create legally binding construction contracts.

The High Court’s consideration of contract formation and the adjudicator’s jurisdiction

The court noted, that the leading authority on this point is Pegram Shopfitters v Tally Weijl (UK) Ltd, which provides clear guidance on how courts should deal with adjudication enforcement where the existence of the underlying contract is credibly disputed. The Court of Appeal in Pegram held that an adjudicator only has jurisdiction if the contractual basis upon which they were appointed is securely established. Where two competing contractual narratives exist, with one conferring jurisdiction and one not as was the case in Pegram, summary enforcement is inappropriate because the adjudicator cannot conclusively determine their own jurisdiction.

Based on the facts provided by the parties, the court also considered the principles in Air Design v Deerglen. In Air Design, the adjudicator had jurisdiction because both parties accepted that a single originating contract existed, allowing questions about subsequent agreements to be treated as substantive matters. By contrast, in the current case there was no agreement on an original contract. WLP said the alleged JCT contract never existed, while HTC said it did. Without a “proper appointment,” the adjudicator cannot rely on Air Design to validate jurisdiction, because that principle operates only once the foundational contract is undisputed. As the court emphasised, these authorities reinforce that substantive questions about scope may overlap with jurisdiction, but only where the adjudicator’s jurisdiction is grounded in an accepted contract, which was absent here.

Having examined the authorities, the court made out the following guiding principles:

  1. A dispute about whether a contract actually existed can affect both jurisdiction and a substantive payment dispute between parties.
  2. Where the parties disagree about whether any contract with an adjudication clause exists, the issue is jurisdictional. If the defending party’s case has a real prospect of success, summary judgment should be refused.
  3. Where the parties agree there is a foundational contract, but dispute whether later work was carried out under that contract or under additional instructions or variations, this is a substantive issue, and the adjudicator has jurisdiction.
  4. Even if the claimant misdescribes the foundational contract, or the parties disagree on its precise terms, the adjudicator still has jurisdiction so long as both sides accept that a foundational contract exists.
  5. Parties resisting enforcement may try to characterise the issue as one of contract “existence”, while those seeking enforcement may frame it as mere “misdescription”. The court must scrutinise the facts carefully but ensure that a valid construction contract exist before an adjudicator’s jurisdiction can arise.

Upon considering the parties’ submissions, the court ruled that this was an “existential” jurisdiction case. If WLP were correct in that the January JCT Contract never existed, then the adjudicator had no jurisdiction at all, and his conclusion on the payment sum cannot bind the parties, even temporarily. WLP was considered to have a real prospect of success in showing this to be the case at trial, meaning enforcement must be refused.

The effect of fraud

WLP’s second challenge was that the adjudicator’s decision should be set aside for fraud. The court referred to several authorities on the point, including the seminal case of PBS Energos A.S. v Bester Generacion UK Ltd. Please view our article to further understand the full ramifications of this leading decision. In this case, it was held that evidence of fraud can indeed defeat enforcement, but only where there is clear and unambiguous evidence. Crucially, the court accepted that fraud discovered only after the adjudicator’s decision can justify refusing summary judgment, a point central to the reasoning in the current case. This reaffirms the decision in Speymill v Baskind.

The court found that as this case was one of jurisdictional issue which had already been determined on other grounds, and as such the fraud analysis did not affect the outcome in this instance. Accordingly, the court held that the fraud challenge did not assist WLP.

"This decision has important consequences for the construction sector, particularly for parties who rely on adjudication as a fast and commercially certain dispute‑resolution mechanism."

Commentary

This decision has important consequences for the construction sector, particularly for parties who rely on adjudication as a fast and commercially certain dispute‑resolution mechanism. The judgment reinforces a critical boundary – adjudication can only function effectively where the underlying contractual framework is secure. If the very existence of the contract said to give the adjudicator jurisdiction is credibly disputed, enforcement will not follow the usual “pay now, argue later” approach.

Readers will be well aware of the dangers of unclear and informal contract formation if and when disputes arise. A significant implication is the renewed emphasis on proper and provable contract formation. The case illustrates how informal communications (WhatsApp messages, oral discussions, and emails) can create significant uncertainty. Contractors and employers must now assume that, if the contractual basis of an adjudication is unclear, enforcement of payment may fail entirely. This risk affects cash flow, which adjudication is designed to protect, and should encourage parties to adopt more formal contract‑execution processes to avoid jurisdictional vulnerability.

The decision also highlights increased scrutiny of documents relied upon in adjudication. Where allegations arise that a contract has been fabricated or retrospectively assembled, the court may decline enforcement even without making findings of fraud. This places a practical burden on claimants to ensure that the documents they rely on are contemporaneous, genuine, and capable of withstanding forensic examination.

Please do not hesitate to contact us should you have any questions regarding proper contract formation for your project.

London Trainee Katherine Pearce also contributed to this article.

< Back to insights hub