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Welcome to the
Dundas & Wilson Construction Act Zone. Construction contracts
entered into on or after 1 October 2011 (in England and Wales) or 1
November 2011 (in Scotland) must comply with new legislation.
How
will
this
zone
help
you?
It provides
you with information about the changes to the Construction Act in one
place. Click on the links across the top of the page for more
information or click here:
What
is
changing?
The Housing
Grants, Construction and Regeneration Act 1996 (sometimes known as the
1996 Act or the Construction Act) applies to all
construction contracts, which is widely defined. It governs the
payment mechanisms for such contracts and gives parties a right to
refer disputes to adjudication.
A new piece
of legislation called the Local Democracy, Economic Development and
Construction Act 2009 (the 2009 Act) has come into force. It
makes important changes
to the 1996 Act. Payment notice procedures have been changed as well
as some of the adjudication rules and certain other areas such as the
right of suspension.
When?
The changes
came into
force on 1 October 2011 in
England and Wales and 1
November 2011 in
Scotland. This means that contracts
entered into on or after 1
October 2011 or 1 November 2011, respectively, will be subject to the
new Act. The Schemes and the Exclusion Orders have also been
changed.
What
do
I
need
to
do?
If you enter
into construction contracts then you must review your contracts
now, in
particular:
- your payment clauses -
you
will need to provide for new style Payer Notices, Payee Notices and Pay
Less Notices;
- review your clauses on
conditional payments - pay when certified is banned;
- review your clauses on
contractual rights to suspend - partial suspension now permitted;
- review your adjudication
provisions.
If you have feedback
on this Zone, please contact
Lynda
Ross.
 Back
to
Dundas
&
Wilson
website
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Do you need help reviewing your
contracts to ensure they are compliant with the new legislation?
If so, please contact us.
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