So you’ve decided to build a padel court: The five legal areas to consider

Padel is an increasingly popular sport, blending the net-divided tennis court with the enclosed rebound walls of a squash court. It is fast-paced, relatively intuitive and plays just as well in doubles as it does in singles.

The Lawn Tennis Association (the LTA) estimates the build cost of a single padel court at £75,000, but with courts in high demand and hire fees ranging from £10 to £20 per hour, there is a good chance of a speedy return on that investment.

But before you get your wallet out, there are a number of steps you will need to think about first. Kieran Woonton, solicitor in our construction team, explains the key areas to consider for your project.

1.     Planning consent

A good planning advisor is critical to getting your padel court off (or, rather, on) the ground.

Planning permission is required for a material ‘change of use’. An indoor court is class E(d) while an outdoor court is class F.2(c). There are some exceptions, but unless you are seeking to convert a casino, a hot food takeaway, or a payday loan shop into an indoor court, then you will probably need planning permission for the change of use alone.

The LTA suggests that planning consent is also required for the new court itself, as well as for:

·         New or replacement outdoor sports lighting;

·         Changing the playing surface/colour;

·         New build clubhouse or refurbishment;

·         Installation of new site access or changing of site levels; and

·         Sound attenuation, where a new padel court is within 30 metres of a neighbouring property.

Site and desk-based surveys and research may need to be carried out to support the planning application. Your planning advisor should have experience and connections that you can rely on.

2.     Consultant appointments

If you are embarking on quite a large-scale padel project (and not just converting a few courts), you will need to formally appoint your design consultants using an appropriate form of written contract.

Your architect, other designers, quantity surveyor/costs consultant and project manager should have professional indemnity insurance, and they should ideally be liable to you for 12 years in respect of the quality of their services.

The professional appointment should provide you with a contractual right to provide reliance on the consultant's services to third parties, such as a funder, a purchaser or a tenant.

You should be granted permanent intellectual property rights over the design, with the right to grant sub-licences.

Your construction lawyer should be able to make light work of this, working collaboratively with your consultant team to ensure that the appointments are fair, robust and market-standard.

You will also need to appoint a principal designer for the purposes of the CDM Regulations, and a principal designer for the purposes of the Building Regulations. Sometimes these roles can be carried out for an additional fee by the project manager or architect. The consultant's appointment will need to reflect the requirements of these legislative functions.

3.     Funding

Unless you are self-funding, you will also need to raise some money.

The LTA has a Quick Access Loan Scheme for new tennis and padel courts up to 60% of the project cost, although there are conditions and eligibility requirements that you will need to meet.

For larger developments, such as a new complex with eight or more courts, there is always the possibility of development finance from a private bank.

Our banking and real estate teams have extensive experience in development finance and can guide you through this process.

The funding agreement may require you to provide security over the site and the construction contracts, such as assignments, rights under insurance policies, collateral warranties and charges.

4.     Building contractor

Okay, now you're ready to get building. Your technical consultants should be advising you on what to include in your tender, for example:

·         Project outline/brief;

·         Specification;

·         Drawings;

·         Pricing document; and

·         Discharge of planning conditions.

The tender should also specify and provide the form of building contract that will be used.

With the cost, number of courts and the complexity of the project in mind, you should choose between the JCT Minor Works, Intermediate, and Standard building contracts. If the procurement method is design and build, then a JCT Design and Build Contract, 2024 edition, might be the most appropriate. Public sector developers may prefer an NEC form of contract.

More likely than not, you will need to tailor the standard form of contract to your project to meet any funding requirements. Your construction lawyer should be able to support you with either a schedule of amendments or, in the case of an NEC contract, the ‘Z clauses’. For example, the standard forms are quite light on requiring the building contractor to prevent noise nuisance, and all those works can cause a racquet.

You will need a competent project manager, architect, quantity surveyor, or employer’s agent to manage the building contract and take responsibility for payment applications, extensions of time, loss & expense claims and certification of practical completion.

5.     Practical completion and defects liability period

Congratulations! The works are complete, and you can get the local mayor in to cut the ribbon. 

If completion is late, your building contract should allow you to deduct damages from sums due to the building contractor. 

The contract should also have specified the length of the defects liability period (usually 12 months), whereby the contractor will be under a contractual obligation to come back to the site and fix any defects. 

Expert legal support

As is the case in every construction project, it is really important to surround yourself with skilled people in the relevant disciplines. This helps to deliver your project on time, in budget, and with the risk adequately distributed among your suppliers.

For more information on anything discussed in this article, or on construction law in general, please contact Kieran Woonton (Solicitor) via 0191 211 7820 or [email protected] or Ross Galbraith (Partner) via 0191 211 7999 or [email protected]