Level 1 - The Construction Act 1996 (LDEDC 2009)

Question 1

How does the Housing Grants, Construction and Regeneration Act 1996 impact construction contracts?

Answer 1

Intended to ensure that payments are made promptly through the supply chain and that disputes are resolved quickly

• The right to be paid in interim, periodic or stage payments.
• The right to be informed of the amount due, or any amounts to be withheld.
• The right to suspend performance for non-payment.
• The right to adjudication.
• Disallowing pay when paid clauses.

Question 2

What is the LDEDC Act 2009 and what does it do?

Local Democracy, Economic Development and Construction Act 2009

Answer 2

Amended the constriction act

Introduced the right to adjudication even if contracts are not in writing (ie verbal)

Changes to the payment regime

Changes to suspension of works