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Construction Act 10 years on: the Construction Contracts Bill 2008
Practical Law UK Legal Update 4-382-7010 (Approx. 3 pages)
Construction Act 10 years on: the Construction Contracts Bill 2008
by PLC Construction
The BERR has published its draft Construction Contracts Bill 2008 (CCB) after more than three years of consulting with construction industry bodies (see External resource, Draft Construction Contracts Bill 2008). The CCB will amend part 2 of the Housing Grants, Construction and Regeneration Act 1996 (Construction Act 1996).
Key amendments in the CCB include:
- A construction contract will no longer have to be in writing: the parties will be able to adjudicate disputes when the contract is partly or wholly oral.
- Parties will no longer be able to agree who will pay the costs of the adjudication before an adjudicator is appointed.
- If the adjudication ends without a decision, the adjudicator will be entitled to be paid a reasonable sum.
- Interim payment decisions will no longer be binding: in future, a party will be able to refer a dispute about an interim payment to adjudication.
- An end to pay-when-certified: a certificate issued under another contract will not determine what and when payments are due under a contract.
- A change to statutory payment provisions: in future, either party may give a "payment notice" and a party wanting to withhold money may serve a "counter notice".
- Changes to the right to suspend for non-payment, including a right to payment for the reasonable costs of suspending work and an entitlement to additional time for the period of suspension and remobilisation.
The BERR has indicated that parties wishing to comment on the CCB have until 12 September 2008 to contact them.
PLC Construction will continue to monitor the progress of the CCB and will shortly publish a detailed Practice note.
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Resource ID 4-382-7010© 2024 Thomson Reuters. All rights reserved.
Published on 22-Jul-2008
Resource Type Legal update: archive
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