52 Chapters
Medium 9781902375205

1.  Introduction

Martin Wood Chartridge Books Oxford ePub

Chapter 4

What can you do if the new Rules are broken?

1.     Introduction

2.     How to suspend performance

(a)     When does the right to suspend arise?

(b)     How to exercise the right to suspend

(c)     What are the implications of suspending performance?

(i)          Scope of the right to suspend

(ii)         Can you contract out?

(iii)        What about the cost of delay?

(iv)        What about third parties or other contracts?

3.     How Adjudication works

(a)     The minimum requirements of the Act for all adjudication procedures

(i)          Adjudication available at any time

(ii)         A quick process

(iii)        Adjudicator’s wide ranging powers

(iv)        Adjudicator’s decision binding

(b)     How adjudication will work in practice

(i)          How do the Scheme adjudication rules work

(ii)         What about the other adjudication rules, JCT, CIC, ORSA, ICE?

(c)     Can the Adjudicator’s award be enforced?

(i)          Contract does not include an arbitration clause

(ii)         Contract includes an arbitration clause

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Medium 9781902375205

(b)  How adjudication will work in practice

Martin Wood Chartridge Books Oxford ePub

Chapter 4

What can you do if the new Rules are broken?

1.     Introduction

2.     How to suspend performance

(a)     When does the right to suspend arise?

(b)     How to exercise the right to suspend

(c)     What are the implications of suspending performance?

(i)          Scope of the right to suspend

(ii)         Can you contract out?

(iii)        What about the cost of delay?

(iv)        What about third parties or other contracts?

3.     How Adjudication works

(a)     The minimum requirements of the Act for all adjudication procedures

(i)          Adjudication available at any time

(ii)         A quick process

(iii)        Adjudicator’s wide ranging powers

(iv)        Adjudicator’s decision binding

(b)     How adjudication will work in practice

(i)          How do the Scheme adjudication rules work

(ii)         What about the other adjudication rules, JCT, CIC, ORSA, ICE?

(c)     Can the Adjudicator’s award be enforced?

(i)          Contract does not include an arbitration clause

(ii)         Contract includes an arbitration clause

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Medium 9781902375205

(b)  Adjudication - Practical Steps

Martin Wood Chartridge Books Oxford ePub

Chapter 6

What do you need to do to comply with the Act?

1.     Introduction

2.     Is your agreement covered by the Act?

3.     Payment and Notice Systems

(a)     Payment Systems

(b)     Notice Systems

4.     Adjudication Rules and Procedures

(a)     Construction Act Complaint Adjudication Agreements

(b)     Adjudication - Practical Steps

5.     Specific Concerns for Consultants/Clients/Contractors

(a)     Consultant Issues

(b)     Client Issues

(c)     Contractor Issues

6.     How and when notices are served

7.     How time limits are calculated

8.     Key Points Summary

1.   Introduction

To decide what is needed to comply with the Act, the first question is inevitably whether or not any specific agreement is covered by the Act. This can, in certain circumstances, be a complicated issue and there will often be circumstances where some of the parts of the agreement are covered by the Act and some are not. In those circumstances it is usually prudent to ensure the entire agreement is Construction Act compliant.

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(b)  Contracts in Writing

Martin Wood Chartridge Books Oxford ePub

Chapter 2

Are you covered by the Act?

1.     Introduction

2.     Is the agreement a Construction Contract?

(a)     What types of agreements can be Construction Contracts?

(i)          Need for an agreement

(ii)         Nature of the agreement

(iii)        Value or size

(iv)        Mixed activities

(v)         Project location

(vi)        Commencement date

(vii)       Crown application

(b)     What are Construction Operations?

(i)          Construction Operations - In

(ii)         Construction Operations - Out

(iii)        Construction Operations - Practical problems

3.     Is the Construction Contract excluded from the Act?

(a)     Residential Occupiers

(b)     Contracts in writing

(c)     The Exclusion Order

(i)          Agreements under Statute

(ii)         Private Finance Initiative

(iii)        Finance Agreements

(iv)        Development Agreements

4.     Key Points Summary

1.   Introduction

The Act provides a set of rules defining those activities that are Or are not covered by the Act. It is unusual for a piece of legislation to be targeted at one sector of commerce. Concern was expressed that the Act would extend into other commercial sectors such as property. Those concerns led to a regime defining relevant construction contracts which are set out in the first four clauses of the Act. In addition, the Secretary of State has exercised the power to exclude various agreements from the Act by an Exclusion Order which came into force on 1 May 199819. In considering any particular contract therefore, there are two questions:

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Appendix 3  The Construction Contracts Exclusion Order 1998

Martin Wood Chartridge Books Oxford ePub

Appendix 3

Construction Contracts Exclusion Order

The Construction Contracts (England and Wales) Exclusion Order 1998

Citation, commencement and extent

1.-     (1)     This Order may be cited as The Construction Contracts (England and Wales) Exclusion Order 1998 and shall come into force at the end of the period of 8 weeks beginning with the day on which it is made (“the commencement date”).

(2)     This Order shall extend to England and Wales only.

Interpretation

2.     In this Order, “Part II” means Part II of the Housing Grants, Construction and Regeneration Act 1996.

Agreements under statute

3.     A construction contract is excluded from the operation of Part II if it is-

(a)     an agreement under section 38 (power of highway authorities to adopt by agreement) or section 278 (agreements as to execution of works) of the Highways Act 1980;

(b)     an agreement under section 106 (planning obligations), 106A (modification or discharge of planning obligations) or 299A (Crown planning obligations) of the Town and Country Planning Act 1990;

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