Government Acts

Question 1

What two key acts govern construction contracts?

Answer 1

• Housing Grants, Construction & Regeneration Act 1996
• Local Democracy, Economic development and construction act 2009

Question 2

What is the Housing Grants, Construction and Regeneration Act 1996?

Answer 2

• Introduced to help payments and dispute resolutions
• Interim / Periodic payment if programme is larger than 45 days
• Right to know amount of payment / what is being withheld
• Right to suspend works for non-payment
• Right to adjudication
  INTERIM PAYMENTS, AMOUNT DUE, SUSPENSION, ADJUDICATION

Question 3

What is the Local Democracy, Economic Development and Construction Act 2009?

Answer 3

• Introduced to firm loopholes in the HGCR 1996
• Contracts do not need to be in writing, verbal contracts can adjudicate
• Pay when certified clauses ineffective, MC cannot withhold payment to SC until they are paid
• Default payment notice introduced - if payer doesn’t issue notice payee can issue and this amount then becomes due
  VERBAL AGREEMENTS, PAY WHEN CERTIFIED, DEFAULT PAYMENT NOTICE