Construction Contracts Legislation
Purpose
Following the Chancellor's announcement in 2004 of a Review of Part 2 of the Housing Grants, Construction and Regeneration Act 1996 (the Act) actions have been ongoing to introduce amendments to improve the clarity of operation and effectiveness of the Act. The Act also applies in Scotland and the legislation is devolved to the Scottish Parliament. To apply consistency of content and timing of the legislation for the construction industry, the Scottish Government has continued to work with the Department of Business, Innovation and Skills (BIS) and the other devolved administrations.
Amendments
The proposed package of amendments to the Act is specifically intended to improve payment practices within the construction industry by encouraging better cash-flow and to enhance the adjudication provisions where dispute arises.
Consultation
Having previously consulted on a broad range of construction sector contract issues BIS/Welsh Assembly Government issued a follow up consultation on 20 June 2007 that set out the specific proposals to be taken forward through legislation. The Scottish Government issued a complementary consultation paper on 29 August 2007 discussing the impact of the proposals for Scotland.
The Scottish consultation exercise ended on 24 October 2007 and all non-confidential consultation responses are available together with the analysis report of the responses.
Draft Bill Consultation 2008
The 2008-09 Draft UK Legislative Programme announced the intention to include the provisions to amend the Construction Act in the Department of Communities and Local Government's Local Democracy, Economic Development and Construction Bill (LDEDC Bill). BIS published draft Bill Clauses for pre-legislative scrutiny on 21 July 2008 and this ended on 12 September 2008. To support consistency of content and timing of the legislation for the construction industry, Scottish Ministers agreed, in principle, to the extension of the draft Bill Clauses to Scotland and therefore the draft Bill issued for scrutiny extended to England, Wales and Scotland.
Current Position
The LDEDC Bill was introduced in the House of Lords on 4 December 2008 and published on 5 December 2008 together with the Explanatory Notes. The construction provisions can be found at Part 8 of the LDEDC Bill. Details of the Bill stages and its progress are available on the UK Parliament website.
The Impact Assessment for the Amendments to Part 2 of the Housing Grants, Construction and Regeneration Act 1996 can be found on the Communities and Local Government website together with further information on the LDEDC Bill.
In accordance with the Sewel Convention, the Scottish Parliament agreed to extend to Scotland by means of Legislative Consent Motion the amendments to Part 2 of the Housing Grants, Construction and Regeneration Act 1996 contained in the LDEDC Bill.
Coverage
The construction industry (contractors, sub-contractors and specialists) and its clients; the construction professions (architects, surveyors, engineers etc); construction lawyers; adjudicator nominating bodies and adjudicators.
Contacts
Audrey Macdonald on 0131 244 2072
Further information
Consultation
Legislation
Adjudication
Additional Information