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 Business Enterprise and Regulatory Reform (BERR) 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.
2007 Consultation
Having previously consulted on a broad range of construction sector contract issues BERR/Wales Assembly Government issued a follow up consultation on 20th June 2007 that set out the specific proposals they intend to carry forward to 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 responses are available on this site. Read the consultation responses.
The analysis report of the responses has now been completed and is available.
Current Position
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, Community Empowerment, Housing and Economic Regeneration Bill. BERR published the draft Bill Clauses for pre-legislative scrutiny on 21 July 2008 and this ended on 12 September 2008. All comments received are now being considered.
Scottish Ministers have confirmed their agreement in principle to the extension of the amendments in BERR's draft Bill to include Scotland and, in accordance with the Sewel Convention, the Scottish Ministers will seek the consent of the Scottish Parliament by means of a Legislative Consent Motion. In anticipation of this consent, the draft Bill extends to Scotland. The draft clauses are on the BERR website.
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- 0131 244 2072
Further information
Consultation
Legislation
Adjudication