52 Slices
Medium 9781902375205

6.  How and when notices are served

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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Medium 9781902375205

(a)  Payment Systems

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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Medium 9781902375205

1.  Introduction

Martin Wood Chartridge Books Oxford ePub

Chapter 3

How the Act affects your payment terms

1.     Introduction

2.     Payment Terms - the New Rules

(a)      Stage Payments - entitlement

(b)      How much is to be paid?

(i)          The Scheme for Construction Contracts - Interim payments

(ii)         The Scheme for Construction Contracts - Final payments

(c)     When are payments due?

(d)     The final date for payment

(e)     Restrictions on pay when paid

(3)     Notices and Deductions

(a)     Payment Notices

(b)     Notice of Intention to Withhold Payment

4.       Key Points Summary

1.   Introduction

The new rules introduced by the Act in relation to payment are likely to have more day to day impact on the construction industry than any of the other provisions. Whilst the new adjudication rules are a radical change to previous dispute resolution procedures, those procedures are only likely to be used infrequently. The new payment rules will apply to each contract each month. The new rules have resulted in substantial amendments to most standard form contracts and professional appointments. The new rules can conveniently be broken down into:

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Medium 9781902375205

1.  Why was the Act introduced?

Martin Wood Chartridge Books Oxford ePub

Chapter 1

Introduction

1.     Why was the Act introduced?

2.     Outline of the Structure and Operation of the Act

(a)     Statutory Framework

(b)     Freedom to Negotiate Terms.

1.   Why was the Act introduced?

The reason why the Government was so determined to implement Sir Michael Latham’s recommendations has its origins in the recession of the early 1990’s. After the economic boom in the late 1980s the construction industry suffered a catastrophic downturn in the early 1990s. No one involved in the industry at that time needs to be convinced of the extent of the problems that arose and there is an abundance of statistical evidence1. For example:

•     500,000 jobs were lost in the industry between 1989 and 1994.

•     Construction output was 39% down between 1990 and 1993.

•     Over 35,000 small businesses and companies became insolvent between 1989 and 1994.

The statistics and the anecdotal evidence available from the time indicate the extent of the crisis across a wide part of the construction industry. It was against this background that in July 1993 the Government and industry commissioned Sir Michael Latham to prepare a report with the objectives of making recommendations to reduce conflict and litigation and encourage the industry’s productivity and competitiveness2.

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Appendix 1  Housing Grants, Construction and Regeneration Act 1996 - Part II

Martin Wood Chartridge Books Oxford ePub

Appendix 1

Housing Grants, Construction and Regeneration Act 1996—Part II

PART II

CONSTRUCTION CONTRACTS

Introductory provisions

104.–(1)       In this Part a “construction contract” means an agreement with a person for any of the following–

(a)     the carrying out of construction operations;

(b)     arranging for the carrying out of construction operations by others, whether under sub–contract to him or otherwise;

(c)     providing his own labour, or the labour of others, for the carrying out of construction operations.

(2)     References in this Part to a construction contract include an agreement–

(a)     to do architectural, design, or surveying work, or

(b)     to provide advice on building, engineering, interior or exterior decoration or on the laying–out of landscape,

in relation to construction operations.

(3)     References in this Part to a construction contract do not include a contract of employment (within the meaning of the Employment Rights Act 1996).

(4)     The Secretary of State may by order add to, amend or repeal any of the provisions of subsection (1), (2) or (3) as to the agreements which are construction contracts for the purposes of this Part or are to be taken or not to be taken as included in references to such contracts.

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