How does the New Construction Act affect you? What does it mean for your business? Find information and resources about the act and its effect on various areas
of the construction industry here.
Much debate has focused on the Local Democracy, Economic Development and Construction Act 2009, especially the amendments to thew adjudication and payment procedures laid out in the previous Housing Grants, Construction and Regeneration Act 1996 which it supercedes.
Some sections have been well received, especially regarding rules governing adjudication costs and the new requirements for written contracts
allowing contractual matters to be encompassed into adjudication.
There has been ongoing debate though on the effectiveness (or ineffectiveness) of the amendments to the payment rules.
The general consensus in the industry seems to be that the new payment rules are overly complex, and would disproportionately affect mainly the
smaller contractors with limited resources and access to legal advice.
There is ongoing consultation and debate regarding the consequential amendments necessary to the Scheme following the changes introduced at part 8 of the Local Democracy Economic Development and Construction Act 2009 to amend the 1996 Act; as well as the proposals of the Construction Umbrella Bodies Adjudication Task Group to improve the effectiveness of the Scheme. (You can download the consultation from here)
This website forms part of an independent research project which examines current payment practices within the UK construction industry, the successes and failures of past and present legislation, as well as the abuse of procedures and standard forms in context of the Construction Act (and its amendment).